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
-
Fund flows rose in April but did investors sell in May?ISA season prompted the highest level of inflows into investment funds during April but the mood may have changed in May
-
Pension Schemes Bill: what’s changing and what it means for youThe government’s latest reforms to pensions are designed to make saving for retirement easier and better value for money – but will they leave you better off?
