FONT-SIZE Plus   Neg

FT: Blackstone To Take Control Of SocGen Property Loans

Private equity giant Blackstone Group, LP (BX) is set to take control of commercial property loans worth 100 million euros owned by French lender Societe Generale SA (SCGLY.PK,SCGLF.PK), the Financial Times reported Sunday.

According to the FT report, the deal is likely to close within weeks and would perhaps be the most significant sale by Societe Generale as it works to reduce its exposure to real estate. Societe Generale, like its peers across Europe, is trying to reduce its exposure to the real estate sector.

In mid-February, Societe Generale reported an 89 percent plunge in profit for the fourth quarter, weighed down by losses from its investment banking business. During the quarter, the company reduced its sovereign debt exposure to Greece, Italy, Ireland, Portugal and Spain - collectively called GIIPS countries - by nearly two-thirds.

On the other hand, Blackstone is seeking to grow its real estate business. In December 2011 Royal Bank of Scotland Group plc (RBS.L, RBS) signed a deal with Blackstone to manage a fund of 1.4 billion pounds of commercial real estate loans.

SCGLY.PK closed Friday's trading at $6.58, up $0.19 or 2.97 percent on a volume of 114,681 shares. BX closed trading at $15.30, down $0.04 or 0.26 percent on a volume of 4.08 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

More Breaking News

Editors Pick
Xbox Live users are aggravated about repeated outages that have prevented gamers from accessing online multiplayer features. Blaming higher egg prices and other rising costs, Dunkin's Donuts will close 100 stores, all of them Speedway gas station and convenience store locations. Micron Technology, Inc. said that its fourth quarter profit fell 59% from last year, as sales declined and gross margins deteriorated amid weak demand and pricing pressures due to continued softness in the personal computer market. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its quarterly sales.
comments powered by Disqus
Trade BX now with 
Follow RTT