Blackstone/Prudential £11.8 billion acquisition of Bradford & Bingley buy-to-let mortgage portfolio

Overview:

• Blackstone and Prudential have acquired a £11.8 billion portfolio of Bradford & Bingley buy-to-let mortgages for £11.8 billion.
• According to the Financial Times, the portfolio, which includes around 104,000 mortgage loans, was sold at a discount of about £400 million to their book value.
• The deal is being enacted by UK Asset Resolution (UKAR), part of HM Treasury.
• The portfolio was acquired by the UK Government after the 2008 financial crisis and the deal is part of a wider plan for Bradford & Bingley to repay £15.65 billion in debt to the UK Financial Services Compensation Scheme.
• Following the deal the UK Government will have recovered more than £18 billion (67%) of the funds provided to the bank under the rescue plan.
• The deal comes at the same time as the UK Government is looking to sell its remaining 3% stake in Lloyds Banking Group.

Sam Duke - Editor