Bank of America is in exclusive talks to sell the bulk of Merrill Lynch's real estate investments to Blackstone for up to $1bn (EUR 690 mln), according to a news report in the Financial Times.

The sale would comprise between $800 mln and $1bn of unwanted property investments in Europe, the US and South America, and is part of the bank's wider efforts to dispose of non-core assets.

According to the paper, the portfolio includes non-performing loans in Italy as well as stakes in logistics properties in central Europe and shopping centres in Germany, for a total value in Europe of EUR 500 mln.