RBS to sell two German buildings for £635m

Royal Bank of Scotland has sold two commercial properties in Germany to Norway’s sovereign wealth fund for €784 million (£633m).

The properties were part of a portfolio that RBS took over from Morgan Stanley in 2010.

Taxpayer-backed RBS declined to comment but Norges Bank, which manages the £400 billion wealth fund, said it was buying the office and retail premises in Berlin and Frankfurt alongside joint venture partner AXA France Insurance Companies.

“It is in line with our strategy to build our real estate portfolio by initially investing in large, well-developed markets alongside partners with aligned interests,” the bank said in a statement.

Earlier this week, Norges paid £348m for a 50 per cent stake in the Meadowhall shopping centre in Sheffield.