The Royal Bank of Scotland Group is weighing the sale of more than 400 million euros ($550 million) of Irish hotel assets, Bloomberg reports. The lender’s Irish unit, Ulster Bank, would sell loans and lodgings in portions to generate more income, Bloomberg sources said.
The bank is also considering selling development land, in tranches.
Ulster Bank Chief Executive Officer Jim Brown said in January his division has to wind down 9 billion pounds ($15 million) of assets being put into a bad bank by the end of 2016. The bank hired investment bank Eastdil Secured LLC last month to advise on a separate potential sale of 1 billion euros of commercial-property assets.
Ulster Bank’s assets include a stake in three hotels in Dublin’s Ballsbridge embassy district. Irish developer Sean Dunne bought the former Berkeley Court, the Towers and Jurys Hotel for about 380 million euros and Ulster Bank, Rabobank Groep NV and Kaupthing Bank took control of the hotels in 2009. Dunne was granted bankruptcy protection by Ireland’s High Court last year.