LONDON Nov 29 U.S. hedge fund Cerberus has
bought a 1 billion euro ($1.4 billion) book of commercial real
estate loans from Lloyds Banking Group at a 21 percent
discount to their nominal value, the UK bank said on Friday.
The sale effectively completes Lloyds' sale of non-core
commercial real estate in Europe, as part of a shrinking of its
balance sheet and restructuring of the bank since it needed a
taxpayer rescue five years ago.
Lloyds said the loans, mainly in the Nordic region, Germany
and France, were sold to Promontoria Holding, an affiliate of
Cerberus Institutional Partners.
They had a nominal value of 1.09 billion pounds ($1.8
billion) and were sold for 1.03 billion euros, or 860 million
The portfolio generated a 7 million pound loss last year and
Lloyds said the deal would have a positive capital impact on the
bank. The deal is expected to completed next month.