UK Lloyds Banking Group plc (LON:LLOY) said Friday it had inked an accord to divest a portfolio of UK commercial real estate loans to Promontoria Thames Ltd for GBP325m (USD501.2m/EUR384.6m) in cash.
The buyer is an affiliate of Cerberus Global Investments.
The deal is seen to be finalised in the final quarter of this year, the vendor said. It should not affect Lloyds significantly in view of the considerable impairment provisions held against the portfolio, the company added.
Through the move, Lloyds delivers further on its non-core asset reduction plan. The funds raised via the disposal will be earmarked for covering general corporate needs, the vendor said.
The particular portfolio, whose gross assets amount to GBP527m, generated losses of GBP47m last year.