Lloyds is reported to be considering spinning off part of its £75 billion commercial property portfolio.
Lloyds Banking Group may split off a portion of its commercial property portfolio, which is worth up to £75 billion, to form a tax-efficient real estate investment trust (Reit).
The idea has been proposed by senior figures within the bank and could be put into practice after the general election, with the government retaining a stake in the new commercial
property investment vehicle, the Independent reports.
A source told the newspaper that the proposals were still at an early stages, added: "It's a sensible idea but the key will be who they get to manage it and what they put in there.
"It will be much cleaner and will make it easier for Lloyds to sell off assets too."
The bank's commercial property portfolio is currently being restructured by Mark Collins, former chief operating officer at Land Securities.
Last week, the Financial Services Authority warned that commercial property mortgages could be storing up £160 billion of debt for the future.
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