STOCKHOLM, July 1 (Reuters) - Swedish debt collector

Intrum said on Monday it had completed the sale of a

large portion of its investment portfolio to Cerberus

with-lower-than-expected net proceeds of 7.2 billion crowns

($682.17 million).

Intrum, Europe's biggest manager of bad loans, announced the

sale to affiliates of Cerberus Capital Management in January

saying it expected to raise 8.2 billion crowns from the deal and

would use proceeds to reduce its own debt.

"The previously disclosed 8.2 billion crowns expected

proceeds are lower due to a later closing date," it said in a

statement.

Intrum said it expects its net debt to decrease to below

49 billion crowns by the end of the second quarter from 57.5

billion in the first quarter.

($1 = 10.5546 Swedish crowns)