Lloyds set for ‘big losses’ on real estate
Lloyds Banking Group appears poised to take a loss of about 35 per cent on a £1bn basket of commercial property debt as talks advance to sell the portfolio, it was reported yesterday.
The report cited people familiar with the process as saying the bank is entering second-round talks with four unnamed remaining bidders for the portfolio of properties.
The sources cited in the report say Lloyds narrowed the field to four parties on Friday, each of which had tabled initial bids at almost £650m, a price that would represent a 35 per cent discount to the loans’ face values.
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Hide AdAcceleration of the process means a sale could take place before Christmas, rather than next year as expected, with Lloyds hoping to unwind the £24bn worth of bad property loans it holds, according to the report.