Lloyds Banking Group to sell off £600 million property loan

Lloyds Banking Group is reported to be putting together a sale of £600 million of property loans.

The sale, which has still to be finalised, would be the second big loan sell off in six months for Lloyds, and follows the £923 million loan sale to Lone Star last December.

That sale, called the Project Royal portfolio, was reported to have been agreed with Lone Star at a 40 per cent discount.
Lloyds had to be bailed out by the taxpayer with £22.5 billion of new capital in 2009, leaving the bank 41 per cent taxpayer owned.
Then in February 2010, the bank posted a loss of £24 billion on bad loans for the 2009 year, which it blamed on reckless HBOS lending.
Lloyds still has £21 billion in non-core commercial loans to sell off.