13th Nov 2015 08:45
LONDON (Alliance News) - US hedge fund Cerberus Capital Management LP on Friday said affiliates of it have entered into a deal to acquire a portfolio of mortgage loans and other assets from UK Asset Resolution Ltd along with the entire issued share capital of NRAM PLC.
UK Asset Resolution is the UK government body formed to take control of the assets of Northern Rock and Bradford & Bingley, the two lenders which collapsed in the financial crisis. NRAM is the former Northern Rock Asset Management business.
Cerberus will buy a GBP13.0 billion loan portfolio in the deal, including around GBP12.0 billion from the Granite securitisation vehicle and other legacy mortgages from NRAM. Cerberus is paying GBP280 million over book value, according to the Financial Times, making the deal the largest ever financial asset sale by a government in Europe.
In October, The Sunday Times reported The Royal Bank of Scotland Group PLC had been involved in the bidding for the portfolio, along with Spain's Banco Sabadell.
By Sam Unsted; [email protected]; @SamUAtAlliance
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