Lloyds Banking Group said on Tuesday it had agreed to sell a portfolio of European commercial real estate loans to private equity group Cerberus for 263 million pounds ($422 million).
The part-nationalised bank is selling off non-core assets in order to bolster its capital position and to focus on lending to UK households and businesses.
Lloyds said the sale proceeds would be used for general corporate purposes. The transaction, which is expected to complete in the fourth quarter is capital accretive but is not expected to have a material impact on the group, it said.
($1 = 0.6237 British pounds)
(Reporting by Matt Scuffham)