Royal Bank of Scotland's 'bad bank' to offload 1,300 homes

Around 80% of the properties are worth less than the UK average home price of £242,415. Photograph: Johnny Green/PA

Royal Bank of Scotland's £3.2bn distressed-property arm is trying to sell off a portfolio of more than 1,300 UK residential properties, and is considering floating them on the stock exchange, in a move that would be seen by the City as the creation of a mini "bad bank".

The investments are worth around £200m and are held within a little-known RBS subsidiary called West Register, which holds assets valued at more than £3bn, mostly in the UK and Germany.

The offshoot buys troubled properties from RBS and would almost certainly form part of the potential "bad bank" that chancellor George Osborne is considering hiving off from the rest of the 81% taxpayer-owned lender.

Aubrey Adams, head of property in RBS's Global Restructuring Group (GRG), which includes West Register, said: "GRG is in effect the bad bank … we are looking very hard at selling [the residential portfolio] as a whole. I would love to do this as a REIT [real estate investment trust, an investment that trades on major stock exchanges]."

A separate Guardian analysis of the West Register portfolio demonstrates what a challenge it would be to sell, as the quality of assets vary hugely. The portfolio contains more than 1,300 homes in Great Britain, ranging in value from about £4m down to £40,000. Around 80% of the properties are worth less than the UK average home price of £242,415, according to a detailed analysis of the portfolio conducted for the Guardian by property website Zoopla.

While the analysis suggests that the value of West Register's residential investments have remained flat over the past three years, it also shows they have dropped by about 7% since RBS was bailed out in 2008. The residential portfolio includes ownership or rights to loans on properties such as:

• The luxury apartment block Charters, a Sunningdale home famous for once entertaining the Duke and Duchess of Windsor.

• A garish £2m house called Water Music located in the millionaires' enclave of Sandbanks, Poole, and once the home of former Bournemouth football club owner Eddie Mitchell.

• A St Andrews student house next door to the digs occupied by Prince William and the then Kate Middleton during their university days.

• Large numbers of new-build housing estates and apartment blocks built during the last boom and located across the country.

• Streets of old properties dotted around the UK's provincial cities, often repossessed from failed buy-to-let landlords.

The investment bank Rothschild is compiling a report for the Treasury on whether it is feasible to split RBS into good and bad banks. It is expected to report within weeks, with analysts broadly expecting a recommendation against a break-up. They argue it is not needed as RBS has already wound down or sold off the vast majority of its bad loans and European state aid rules and the need for approval from RBS's minority investors would make the plan unworkable. In any case, Adams predicts that West Register will sell all of its assets within three years.

Apart from residential property, the Guardian's analysis also shows that West Register controls vast quantities of land as well as a diverse range of commercial property assets. They include:

• Top London office blocks.

• More than 100 pubs and hotels, including four containing restaurants run by the celebrity chef Marco Pierre White, plus the rump of the Ramada Jarvis hotel chain.

• A Norfolk pig farm with capacity for about "720 sows with 750 maiden gilts".

• Care homes.

West Register started coming to the City's attention after RBS was saved from collapse by a £45bn taxpayer bailout in 2008. However, the subsidiary was originally set up in the 1990s to take on properties from highly distressed lending situations to avoid selling them in the open market at knockdown prices. It competes against outside investors to take control of troubled RBS assets and only acquires a property if it makes the winning bid.

RBS says West Register holds £3.2bn of assets, 38.8% are located in Great Britain, 33.3% in Germany, 8.3% in the US, 2.7% in Ireland and 17% in the rest of the world.

The vast German portfolio is partly a result of RBS's ill-fated takeover of the Dutch bank ABN-Amro – the deal that brought the Edinburgh-based bank to its knees in 2008.

However, West Register has attracted an army of critics. Some say that the process allows RBS to book smaller writedowns on distressed assets as, if West Register wins the bidding process, it will have valued the troubled properties at a higher rate than the market. RBS counters that the process means the bank gets a better return for its main shareholder, the taxpayer.

The property arm has attracted further controversy, as borrowers have accused it of being a mechanism used to aggressively take their assets away – although RBS says West Register only ever bids after investors have no chance of recouping any return on the initial investment.

But despite those brief public debates, West Register remains an obscure arm of which little is really known externally. Even within the bank there are contradictions, as RBS has consistently maintained that West Register's sole function is to own properties, and not the loans behind them.

However, the Guardian's analysis of Land Registry records shows that West Register in fact controls rights to a string of the bad loans, including ones attributable to: 10 Fleet Place, a City office block that is in the process of being sold for £115m; Drayton Manor theme park in Staffordshire; Harleyford Golf Club, part of the luxury Harleyford Estate and marina complex in Buckinghamshire; and Sloane Square House, a large office and apartment block in one of the most prestigious and expensive areas of London.

RBS added that West Register has rights to restructured loans on properties, which allow the bank to share in any profits made on properties that are eventually sold. It is not clear whether the rights, known as charges, allow West Register to more easily take ownership of properties.

RBS's distressed-property arm has already spent years shrinking its balance sheet since the crisis. The process has included high-profile deals such as selling Heineken a portfolio of pubs for £412m in 2011, including the Punch Bowl in Mayfair where the lease is part-owned by the film director Guy Ritchie.

Four uses of face oils

Four uses of face oils. PHOTO: FILE

LONDON: While dermatologists endorse plant-based facial oils as they offer major hydration, makeup artists too recommend them as they leave the skin glowing but not greasy.

From helping remove makeup to being a natural looking highlighter, facial oils have some secret uses, reports vogue.in.

Here are four benefits of facial oils:

1. Any facial oil will gently remove waterproof mascara, long wearing eye shadow and lipstick in just a few trouble free swipes.

2. Rich fatty acid oils, like argan and jojoba, that are easily absorbed by the skin are also soaked up by hair. Hair stylist Guido Palau suggests smoothing a drop over dry ends or unruly bangs to tame frizz and tackle flyaways.

3. Add oil to a cream or liquid foundation for hydration and to make it more sheer for lighter coverage.

4. After your makeup, tap a bit of oil on to cheekbones, the bridge of the nose and shoulders for a natural looking highlighter, says makeup artist Quinn Murphy.

Reference to Musharraf gets War Chhod Na Yaar in trouble

Indian censor board told film's producers to snip out reference to Musharraf from the film. PHOTO: FILE

There is no good news for the film-makers of anti-war satire War Chhod Na Yaar(WCNY) as the Indian Censor Board of Film Certification has thrown its October 11 release in a tizzy. Due to reference in the film directed towards former president of Pakistan General (retd) Pervez Musharraf, the film’s release is now uncertain.

Clamping down what has been touted as India’s first war comedy, the censor board told the film’s producer Prashanth Narayan that WCNY has been forwarded to the revising committee. “We showed the film to the Censor Board on Monday. They suggested some minor changes like beeps in a couple of places. They promised to give the letter clearing the film the next day with a ‘U’ certificate,” said Narayan.

However, Narayan was shocked when his film was refused the censor certificate. “I was told the film has gone to the revising committee because of the reference to General Musharraf,” said Narayan, adding that they had to snip out the reference to Musharraf. “My argument is not about the cut. I want to know why we were not told about the necessary changes when we first went to the censors,” he added. “The delay had a snowballing effect [to the film]. The prints took longer to be readied and the distribution process was delayed. We lost our precious time.”

The trailer of WCNY, which was released three weeks ago, sparked various debates online with people from Pakistan complaining that the film demeans the Pakistani Army and portrays it in a bad light.

Six-pack doesn’t signify health, says Hrithik

Contrary to popular belief, Hrithik admits that he is not exactly ‘into’ body building. PHOTO: FILE

Actor Hrithik Roshan, known for his chiselled body, says that six-pack abs are not a criterion to determine health. Hrithik believes that exercise keeps one in good physical and emotional shape.

Accompanied by brother-in-law Zayed Khan at Dr Batra’s Positive Health Awards 2013, Hrithik shared his idea of what constitutes fitness. “To be healthy you have to eat right and you have to do some cardiovascular [workout],” IANS quoted him as saying. Mind body and soul — three things you have to work out every single day. Emotional health is also important and so is keeping good company.”

During his college days, Hrithik’s health had been declared by doctors as insufficient for a profession like acting, reported Masala!. But his willpower and health regimen made him fight back. Contrary to popular belief, Hrithik told Masala! that he is not exactly ‘into’ body building. “I don’t have the fittest or the best body in Bollywood. Everyone is touting me as a Greek god, which I am not,” the 39-year-old confessed.

Hrithik is currently busy promoting his upcoming superhero film Krrish 3, in which he will be sporting six-pack abs. However, explaining his idea of health at the event, Hrithik proclaimed, “When I say healthy, I don’t mean six-pack abs. Those are not important. They are just aesthetic. Those are things that Zayed  and I have to do because we are in movies. But that doesn’t signify health.”

On the buzz that Kareena Kapoor is building a six-pack for Shuddhi, Hrithik, who plays the male lead in the film, wished her luck if this holds true, reported IANS. Although the film’s director Karan Malhotra has rejected the news, Hrithik commented on it, saying, “This is her [Kareena’s] choice, all the best to her”.

Waar: ‘Girls can do action sequences, too’

This screen grab from the Waar trailer shows Khan playing an overconfident and unapologetic agent. PHOTO: PUBLICITY

LAHORE: 

One would expect Pakistan’s first major action-thriller to keep the fighting scenes focused on male characters. But Waar makers have something different up their sleeves. The film releasing on Eidul Azha features singer-turned-actor Meesha Shafi and TV actor Ayesha Khan, who are all set to show some stellar action stunts.

“I wanted headstrong dominating females in the films,” says producer Hassan Waqas Rana, adding that Khan plays the role of a chief communication and intelligence officer at a counter-terrorism agency. “The girls had to go through rigorous training, and Ayesha had to carry a weapon at all times. So, her way of walking also changed.” Without giving away too much, he adds that Shafi will be seen in a “dominating mode that builds the action of the film.”

Khan plays an overconfident and unapologetic agent. “I wanted to show that girls can do action sequences, too,” she tells The Express Tribune. “For the first time, I got the chance to be part of action sequences and use real weapons.” She adds that due to Waar’s “sophisticated cinematography”, the project will be distinctly different from others.

The actor admits she had to take a break from television which is her forte, but she doesn’t regret the decision one bit as she feels Waar will revive stakeholders’ confidence in the industry. “We all had been working independently for quite some time but this has brought us together for the first time,” says Khan, referring to her co-stars Shaan, Shamoon Abbasi, Shafi, Ali Azmat and Hamza Ali Abbasi.

Waar has been shot primarily in English, a different challenge altogether for actors who have largely done projects in Urdu. “I have always acted in Urdu. I would joke in the middle of the scenes that it’s so hard to cry in English,” she says with a laugh.

Expectations surrounding the movie are mounting up and rightfully so. Waar has been in production for over two years and is finally complete. Cast member Abbasi admits this was bound to happen as the current infrastructure and support are not developed enough to cater to such large-scale projects. “I am certain that this movie will set a [new] standard. It will be the one to watch out for,” he says, proud of the team’s accomplishments.

“For most of us, it was not a professional commitment, but more a commitment of passion,” he continues, adding that the actors have worked hard to make the film as close to reality as possible.

Azmat had turned down several television projects just to be part of Waar as he was enamoured by the freshness of the project, Abbasi reveals. “In my case, I was involved from the beginning, so I grew up with this.

HP first to get Leap Motion tech onto a computer

The new HP Envy 17 Leap Motion Special Edition is the first computer with Leap Motion's technology built in.
(Credit: Leap Motion)

From the beginning, Leap Motion's founders were certain their gesture-control technology was a natural to be embedded directly into computers.

That bet paid off Thursday when Hewlett-Packard became the first computer maker to build Leap Motion's technology into one of its machines. Starting in a few weeks, the San Francisco startup said, the HP Envy17 Leap Motion Special Edition laptop will go on sale.

Leap Motion's technology is designed to allow users to control their computers with hand gestures alone. Until now, the only way to use it was with the Leap controller, a USB stick-sized device that plugs into a computer's USB port. The technology measures -- and translates to the computer -- motion with an accuracy of a hundredth of a millimeter. Already, more than a hundred applications have been built to leverage the technology. They are available through Airspace, the company's app store.

In January, Leap Motion announced its first bundling deal, with Asus, in which its controller was packaged alongside a number of Asus' computers. Then in April, it announced it had struck a deal to embed its technology into then-unspecified HP computers. The Envy 17 laptop is the first fruit of the HP partnership.

Embedding the technology directly into a computer is possible, explained Leap Motion CEO Michael Buckwald, because the company has significantly reduced the size of the module housing the Leap's sensors and other hardware. Buckwald said the new module is 70 percent smaller than its predecessor.

Leap Motion's new module (right) is 70 percent smaller than the exiting Leap controller.
(Credit: Leap Motion)

For now, HP is the only manufacturer signed on to embed the Leap technology. But Buckwald said Leap Motion is in similar discussions with others. In fact, those discussions are, at least in part, geared towards the company's ultimate goal -- getting its technology build into smaller devices, such as tablets or smartphones. "We want to be embedded everywhere," Buckwald said.

While the actual applications for such a melding of hardware would be up to developers, Buckwald said he can imagine things like a smartphone with embedded Leap technology being used as a remote control for another device. Such an integration would not be possible with the Leap controller on the market today, but would be entirely feasible with the company's current technology.

Via CNET

No more privacy on Facebook.

There is a news which I think you may not know that Facebook has changed its privacy configuration once again. Thanks to the new “Graphic app”, any person on Facebook anywhere in the world can see our photos, our “likes” and our “comments”. Those of my friends who do not maintain my information in private will be eliminated from my list of friends, because I want the information I share with you, my friends, to remain among my friends and not be available to the whole world.

I want to be able to publish photos of my friends and family without strangers being able to see them, which is what happens now when you choose “like” or “comment”. Unfortunately we cannot change this configuration because Facebook has made it like this. To make changes you should follow the steps given below.

1. Place your cursor over photo (without clicking) and a window will open.

2. Now move the cursor to the word “Friends”, again without clicking and then on “Settings”.

3. Un-check “Life Events” and “Comments and Like”. This way my activity with my family and friends will no longer be made public.