Lloyds shifts loan book for over £230 milion

In a bold move, Lloyds Banking Group has landed the sale of a commercial property loan book valued at over £230 million.

Yesterday, Lloyds Banking Group agreed the sale of a portfolio of European commercial property loans to MELF, a firm linked with London based investment fund, Marathon asset Management LP.

The transaction is quoted at resting at €280 million equating to just over £230 million.

The sale is reportedly part of the group's strategy to reduce its non-core run-off portfolio. The gross assets subject to the transaction are £494 million.

In the year to 31 December 2013 the assets are said to have incurred a loss of £54 million.

The sale proceeds are intended for general corporate purposes. Although, these are not thought to have a material effect on the Group, including on its capital position. This is due to existing provisions taken against these assets.

The transaction is expected to complete in the second quarter of 2014.

It was reported last month that, Lloyds’ loan book grew by £6.9 billion in 2013. This was revealed as the group’s lending to commercial property rose by 32.7 per cent.