LONDON, June 4, 2014 — Lloyds Banking Group plc (the Group) announces today that it has agreed the sale of a portfolio of UK commercial real estate loans (the Portfolio) to Promontoria Holding 109 B.V., which is an affiliate of Cerberus Global Investors, for a cash consideration of £352 million. The transaction is part of the Group’s continued non-core run-off portfolio asset reduction programme.
The gross assets subject to the transaction are £536 million and generated a loss of £17 million in the year to 31 December 2013. The sale proceeds will be used for general corporate purposes and the transaction is not expected to have a material impact on the Group, including on its capital position, due to existing provisions taken against these assets.
The transaction is expected to complete in the second half of 2014