Lone Star Buys Lloyds' $1.4B Real Estate Debt Portfolio

Law360, New York (December 22, 2011, 7:23 PM EST) -- Scotland's Lloyds Banking Group PLC has agreed to sell a portfolio of mortgage-backed loans worth more than £900 million ($1.4 billion) to distressed debt and equity investor Lone Star Funds, Lone Star said Thursday.

The debt portfolio, known as Project Royal, had reportedly been secured against about 700 million pounds worth of commercial property and was originally worth close to 1 billion pounds before Lloyds announced the sale, according to real estate finance research company CoStar Group.

The sale process began in September when the state-owned...
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