This article is from the Australian Property Journal archive
UK financial giant Lloyds Banking Group has sold a further $1.269 billion worth of distressed property loans in Australia to Morgan Stanley and private equity giant Blackstone.
In total the British government-backed Lloyds has sold almost $3 billion of non-performing loans in Australia, following the disposal of $1.7 billion worth of debt to Morgan Stanley and Goldman Sachs in November last year.
The latest sale has resulted in a $287 million loss for Llyods.
Lloyds CEO Dave Smith said the sale is in line with its strategy of reducing its non-core assets and removing assets which carry the greatest risk from its balance sheet.
“This transaction further de-risks the Australian business and results in a cumulative 92% reduction of our real estate non-performing loan portfolio,” he concluded.
The loans are tied to $1.9 billion worth of assets, including 480 Queen St Brisbane; the Meridien Group’s marina project at Airlie Beach; Austexx’s Spencer Street Fashion Station which owes $540 million and is currently on the market.
Property Review
