Richard Dakin to leave Lloyds in November as good bank consolidates team structure

Lloyds Banking Group has confirmed this morning that Richard Dakin, managing director and head of corporate real estate business support unit and non-core, is leaving the bank in November after more than 30 years with the group. 

LBG logo for webFor the last five and a half years, Richard has led the deleveraging of the group’s non-core commercial real estate assets, which reduced from a peak of £45bn in 2009 to its current book size of less than £5bn.

Separately, Lloyds has announced this morning a consolidation of its corporate real estate global corporates and mid-market, led by John Feeney, managing director, global corporates real estate.

As for the departing Dakin, under his leadership, Lloyds kick-started the trend in deleveraging through loan portfolio sales, starting with the sale of its maiden NPL, the £923m Project Royal, to Lone Star for just under £550m in December 2011. 

This was followed the next summer by a second UK NPL sale, the £625m Project Harrogate to Oaktree for circa £260m, and then the bank’s first Irish NPL sale, the €361m Project Prince, to Kennedy Wilson and Deutsche Bank for €61m.

Lloyds thereafter accelerated its disposal program, selling a further four UK loan portfolios – projects Forth, Thames, East and Avon – with gross liabilities of £2bn, three Irish NPLs – project Pittsburgh, Lane and the Moran Hotel loan – with gross liabilities of €2.32bn.

In addition, Lloyds sold six separate Continental NPLs – project Chamonix, Indie, Alpha, Charlie, Bravo and Aberdonia – which had combined gross liabilities of €3.1bn.

Andy Cumming, managing director and head of global non core, said: “Richard and the Corporate Real Estate Business Support Unit team have done a fantastic job over the last five years and have achieved outstanding results in exceptionally challenging circumstances, whilst always seeking to do so by working consensually with customers wherever possible.

“Under Richard’s leadership, the team has delivered a number of innovative solutions and with the non-core property book now at a significantly reduced level, Richard has decided the time is right to seek a new challenge.  I would like to thank him for his significant contribution to the Group and to wish him every success in his future career.”

In the bank’s second announcement this morning, Lloyds has combined its corporate real estate global corporates and mid-market teams will be into one commercial real estate team serving all commercial real estate clients with a debt requirement of over £10m.

Lloyds said by bringing together the two parts into one team “clients will benefit from a single, consistent service and the strong capabilities the team will be able to offer from client relationship, structuring and distribution perspective”.

Feeney will lead the team and continue to report to Clare Francis, managing director for Global Corporates.  Marty Green, who currently leads the separate mid markets team, will form a part of Feeney’s leadership team upon the merger of the two teams.

Feeney said in a prepared statement: “Our support for and commitment to the commercial real estate sector is demonstrated by our strong lending in recent years and through our role in helping our clients to access appropriate debt solutions.

“As our clients increasingly seek a broad range of funding solutions, bringing together our mid market and global corporates teams will enable us to provide them with the most appropriate solutions to fulfil their growth strategies.”

The Social Housing business will remain within the Mid Markets team, with the team continuing to be led by Tony Oakley. The support for SME businesses within the real estate sector will continue unchanged by this news and continues to be led by Mark Ellis.

About CoStar News

Finance Editor, CoStar News
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