Royal Bank of Scotland is understood to have narrowed to four the shortlist of companies to progress to the second and final round for the €1.2 bn Project Achill portfolio.

CoStar News is reporting that three private equity funds - Lone Star, Cerberus Capital Management and Oaktree Capital Management - and one investment bank - Deutsche Bank - have moved to the second round, following first round bids which were submitted on August 1st.

The four finalists are understood to have bid for the majority of Project Achill, which comprises more than 3.53 million square feet of commercial property assets and a further 1,565 residential units, 817 acres of land and 918 hotel rooms.

The bulk of the assets are in Dublin and Northern Ireland with almost half in the residential or retail space.

In addition, there is understood to be progressing bids by underlying borrowers who are seeking to re-purchase their debt.