Fund manager Invesco Real Estate and West Register – the property management company within Royal Bank of Scotland – today said that they had agreed to liquidate a heavily indebted listed property company before 2014.

The Invesco Property Income Trust has £207m of assets in the UK and Europe, and £201m of debt provided by RBS.

Attempts to reduce the trust’s loan to value ratio and put the company back on a stable footing have failed, and now the debt has been extended to 2014 to allow a sale of the company’s assets.

Invesco said that it would not have been able to refinance the company’s debt in 2014, so assets would be sold to pay down the debt.

Under the terms of the agreement, the trust has entered into a profit participation fee with West Register, the property management company set up by RBS in the 1990s to handle distressed loans. West Register will receive a share of any profits if the value of the sales comes to more than the level of the debt, up to a maximum of 20%.

Shareholders in the trust will now vote on the proposals, and Invesco said if they are not voted through the trust is likely to be put in some form of insolvency process.