Lloyds To Sell A Portfolio Of UK Corporate Real Estate Loans To Promontoria

(RTTNews) - Lloyds Banking Group Plc. (LYG, LLOY.L) Monday said it has agreed to sell a portfolio of UK corporate real estate loans to Promontoria Holding 87 B.V., for 90 million pounds in cash, as part of the group's continued non-core asset reduction program. Promontoria is an entity affiliated with Cerberus European Investments, LLC.

The portfolio generated profits of 1 million pounds in the year to December 31, 2012. The gross assets subject to the deal are 147 million pounds. The sale proceeds will be used for general corporate purposes.

The transaction, although capital accretive, is not expected to have a material impact on the group. It is expected to complete by the end of 2013.

Lloyds, Britain's largest mortgage lender, and other European lenders are divesting real estate portfolio to boost their cash reserve and to adhere to new regulations.

It was announced in late November that Lloyds would sell a corporate real estate portfolio to Promontoria for 1.032 billion euros in cash, or about 860 million pounds. That deal comprised non-core European and Nordic loans.

Further, Lloyds said on December 6 that it has agreed the sale of a portfolio of non-performing Irish retail mortgages to Tanager Limited, an entity affiliated with Apollo Global Management, LLC (APO), for 257 million pounds.

LLOY.L closed up 1.4 percent on Friday at 78.24 pence.