Financial Times reported, citing unidentified people familiar with the matter, that RBS has asked private-equity groups including Lone Star Funds, Starwood Capital Group and Blackstone Group to sign a non-disclosure agreement as a start to the process.
According to the report, bids are expected to be significantly lower than the value of the loans.
The sale is part of a wider disposal of loans in RBS’s non-core banking unit which is codenamed Project Monaco.
There is as much as £44bn of property loans that could be sold or wound down by 2014, reported Financial Times.
RBS wants its partner to take a significant minority stake, but also to asset manage the loans and inject equity where needed.
Recently, Lloyds Banking Group has also considered such a loan portfolio sale.
