Lloyds sells UK real estate loans for £352m

5th Jun 2014 07:13

Lloyds Banking Group is to sell a portfolio of UK commercial real estate loans to Promontoria Holding for £352m in cash.The sale to Promontoria, which is an affiliate of private investment firm Cerberus Global Investors, is part of Lloyds' continued "non-core run-off portfolio asset reduction programme", the company said.The portfolio's gross assets were recently valued at £536m but generated a loss of £17m in 2013.The deal is expected to complete in the second half of this year.Lloyds said: "The sale proceeds will be used for general corporate purposes and the transaction is not expected to have a material impact on the group, including on its capital position, due to existing provisions taken against these assets."BC