Lloyds Banking Group plc (LLOY.L) Friday said it agreed the sale of a portfolio of UK commercial real estate loans to Promontoria Thames Limited, an entity affiliated to Cerberus Global Investments, for 325 million pounds in cash. The transaction, which is expected to be completed in the final quarter of 2013, is part of its continued non-core asset reduction, said the company.
The sale proceeds are expected to be used for general corporate purposes and the transaction is not expected to have a material impact on the company due to significant impairment provisions held against the portfolio.
The gross assets subject to the transaction are 527 million pounds. The Portfolio generated losses of 47 million pounds in the year to December 31, 2012.
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