Lloyds Announce Sell-Off
22 September 2011
In a sign that it is accelerating the process of offloading its £24bn bad loan book, Lloyds has announced a sell-off of £1bn worth of bad property loans.
Investors, including pension funds, equity groups and foreign investors have been awaiting the announced sale, which is expected to include commercial property loans made at the height of the boom on high street shops, offices and factories.
This is the first bulk sale of bad loans by the group, which thus far has sold off loans singularly, so of course, experts are speculating that this could be the start of a major push to get its balance sheet back into the black.
Having said that, it is still unclear how much of a write-down Lloyds will have to take to sell the loans, largely because very few people know the nature of the assets the loans are secured against -- the sale is still at a very early stage.
This sales, which is being managed by JP Morgan Cazenove, comes four months after Lloyds announced the sale of a portfolio of distressed assets, having sold off £1.8bn in smaller sales in the first half of the year.