Lloyds Banking Group has agreed the sale of a loss-making portfolio of UK commercial real estate loans to Promontoria Thames Ltd, which is affiliated to alternative investment group Cerberus Global Investments, for £325m.
Although the portfolio holds approximately £527 in gross assets, it generated losses of £47m in the year to 31 December 2012.
Proceeds of the sale, which is the latest outcome of the group’s drive to reduce its non-core assets, will be used for general corporate purposes.
Lloyds said it does not expect the transaction to have a material impact on its results due to “significant” impairment provisions held against the portfolio.
The deal set for completion in the fourth quarter of 2013.
