Lloyds has sold a portion of its Project Poseidon portfolio to a consortium comprising Goldman Sachs, Carval and Bank of Ireland for £827m.
The consortium, Ennis Property Finance, has bought the commercial property loans element of the portfolio, which comprises £2.6bn of gross assets, of which £2.3bn were impaired at the end of 2014.
The Poseidon portfolio was one of the larger Irish real estate portfolios, comprising more than 2,000 highly granular assets with an average loan size of close to €5m (£3.5m).
Overall the project had a face value at launch of €4bn.
The commercial mortgage element of the portfolio was generating pretax losses at Lloyds of about £130m.
The sale leaves the bank with close to 2.2% of impaired loans as a share of its total loan portfolio, a substantial reduction from the 8.6% of the portfolio that the bank carried at the end of 2012.
Following the sale, the bank will have less than £30m in commercial assets in Ireland on the books.
The proceeds from the sale will be used for general corporate purposes.
