Lloyds To Sell Corporate Real Estate Loans For 860 Mln. Pounds - Update

(RTTNews) - Lloyds Banking Group plc (LLOY.L) (LYG) Friday announced the sale of a corporate real estate portfolio to Promontoria Holding 89 BV, an affiliate of Cerberus Institutional Partners V L.P., for 1.032 billion euros in cash, or about 860 million pounds.

The transaction, comprising non-core European and Nordic loans, is part of efforts to dispose non-core assets, Lloyds said.

The transaction is expected to complete by the end of 2013.

According to the bank, the gross assets subject to the transaction are 1.094 billion pounds, and the Portfolio generated losses of 7 million pounds in the year to December 2012.

Lloyds said the sale proceeds will be used for general corporate purposes and the transaction, although capital accretive on a Basel 3 basis, is not expected to have a material impact on the bank.

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.

Earlier today, a Bloomberg report said that Lloyds is to sell its stake in U.K. homebuilder Keepmoat Ltd. in a deal that may valued at 600 million pounds.

Lloyds stock closed Friday at 77.40 pounds, up 0.53 pence or 0.69%, on a volume of 120 million shares on the London Stock Exchange. On the New York Stock Exchange, the stock closed at $5.085, up $0.025 or 0.50%, on a volume of over 1.5 million shares.