Royal Bank of Scotland Selling Commercial Property

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The Royal Bank of Scotland is moving to sell off a portfolio of commercial properties as it looks to jettison more of its distressed assets, according to media reports.

RBS' "bad bank" division, West Register, will sell the group of 28 warehouses in the U.K., with a guide price of 65 million pounds ($105 million).

The sale could be the first of many, as the bank looks to shed more of toxic assets, Property Week reports. The bank has been selling individual properties, but is now moving more aggressively to bundle real estate for bulk sales. The warehouse has been labeled its first commercial property portfolio sale in the U.K. since the downturn.

RBS reportedly controls more than $3 billion in distressed assets, leading government officials to call for the lender to establish a "bad bank," separating the under-performing assets from the rest of the bank's operations.

Earlier this month word leaked that RBS was trying to sell a portfolio of 1,300 distressed homes.  The quality of the assets in the home portfolio "varies hugely," a study by the Guardian newspaper and Zoopla found.

"Around 80 percent of the properties are worth less than the U.K. average home price of £242,415," the analysis found.

The overall value of the residential portfolio had dropped 7 percent since RBS received a government bailout in 2008, the paper reported.