Triumvirate win Lloyd's £2.6bn Poseidon

The consortium paid UK lender Lloyds less than £1 billion for the £2.6 billion par value portfolio, which was made up of secured loans to Irish SMEs.

Goldman Sachs, CarVal and Bank of Ireland have bought a portfolio of Irish commercial loans from Lloyds Banking Group for £827 million ($1.3 billion; €1.2 billion), PDI sister title Real Estate Capital reported.

The loans, made to small and medium sized businesses in Ireland, are mostly secured against commercial real estate.

The sale, named Project Poseidon, saw gross assets valued at about £2.6 billion disposed. About £2.3 billion were impaired.

The proceeds from the sale will be used for general corporate purposes.

Lloyds said: “The sale is in line with the group’s strategy of deleveraging its balance sheet by reducing run-off assets and creating a low risk, UK focused bank.”

Following the sale, Lloyds’ remaining exposure to commercial assets in Ireland will be less than £30 million.

As at 30 June 2015, impaired loans as a percentage of closing advances for Lloyds were 2.7 percent. Provisions as a percentage of impaired loans were 55.1 percent.

The assets generated a pre-tax losses of around £130 million in 2014. The sale is not expected to have a material impact on Lloyds but will be capital accretive by around 7bps.

The sale is expected to complete in Q4 of 2015.