Lloyds Banking Group has received initial bids of around £650 mln for a commercial property debt portfolio with a face value of £1 bn, according to a news report in the Financial Times. If the deal goes through, the bank would be looking at a discount of 35% in what would be the lender's first sale of a distressed property loan package.

According to the paper, Lloyds has narrowed the field to four parties, in a process run by JPMorgan Cazenove. It is unclear who are the final bidders.

The portfolio involves loans secured against office, retail and industrial assets, all outside of London.