Lone Star, a US private equity group, has been named as the exclusive bidder for £900m-worth of distressed property loans currently owned by Lloyds Banking Group, according to the Financial Times.
The property loans, known as the Project Royal portfolio, is the biggest disposal of loans by a UK bank since the 2008 recession.
It's suggested that the deal could be the catalyst for a number of similar deals.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Other bidders who are now said to have been ruled out as of Tuesday night are Cerberus and Colony Capital.
The banking giant, which before only sold single loans, will take as much as a 40% loss on the value of the portfolio.
Lloyds' share price rose 2.07% to 27.66p by 12:31PM.
NR
-
8 of the best houses for sale with home cinemasHouses for sale with home cinemas – from a modern oast-house style property in Kent to a house in Buckinghamshire with Dolby sound and bespoke seating
-
Rachel Reeves faces £23 billion capital gains tax “black hole” – will she be forced to look elsewhere?The fiscal watchdog has downgraded its forecast for capital gains tax revenues, leaving chancellor Rachel Reeves with £23 billion less than previously expected
