Lloyds Sells Australian Loans to Morgan Stanley, Blackstone

Lloyds Banking Group Plc agreed to sell 809 million pounds ($1.25 billion) of Australian corporate real estate loans to a Morgan Stanley and Blackstone Group LP joint venture for about 388 million pounds in cash.

Lloyds will use the proceeds from the deal to repay debt, the London-based company said in a statement today. The loans generated losses of 183 million pounds last year, said Lloyds, the U.K.’s second-biggest government-aided bank.