Royal Bank of Scotland’s property exposure woes continue with the news that it has been forced to take back the keys on €2.1bn (£1.8bn) in German properties bought at the peak of the market by a fund run by Morgan Stanley.
It has taken back control of a portfolio of 28 properties, mostly located in the Berlin and Rhine-Main areas.
The bank lent about €1.9bn to buy the portfolio in the summer of 2007. It is reported that Argoneo will continue to look after the properties for a fee.
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