Lloyds Agrees to Sell European Property Loans for $387 MillionNeil Callanan
Lloyds Banking Group Plc agreed to sell European real estate loans for about 235 million pounds ($387 million) to an affiliate of hedge-fund operator Marathon Asset Management LP as the bank disposes of non-essential assets.
The loans have a face value of 494 million pounds, Lloyds, the U.K.’s largest mortgage lender, said in a statement today. The sale won’t have a material impact on the bank due to earlier loss provisions taken against the assets, it said.
Banks and other European lenders are selling real estate loan books and properties as they repair balance sheets damaged during the financial crisis and try to conform with new regulations. Commercial property loans and real estate-owned sales reached 33.7 billion euros ($46.6 billion) last year, up 47 percent from 2012, according to broker Cushman & Wakefield Inc.
The sale to Marathon is expected to be completed in the second quarter.