UK Mortgages in Keystone Property Finance deal – The Board of UK Mortgages Limited has announced that, following a competitive process and preliminary discussions, terms have been agreed on a forward flow purchase arrangement for Keystone Property Finance to originate a book of Buy-to-Let mortgages. This was the deal that was first announced on 26 April 2018. Once completed, this will be UK Mortgages’ fifth transaction, adding a new complementary growth channel to existing investments.
Given the advanced nature of the negotiations, the transaction is expected to be completed over the course of summer 2018, following the finalisation of pre-acquisition due diligence, documentation and financing arrangements.
More details will be made available once the transaction is completed, but the expectation is that this transaction will generate a gross IRR for UK Mortgages in excess of 7% (from the date of purchase).
Furthermore, subsequent to the announcement on 1st June 2018 of the signing of terms to purchase a GBP350m portfolio of BTL loans from Coventry Building Society, TwentyFour have been progressing the term financing phase of this acquisition, and have completed a marketing roadshow for a forthcoming securitisation of the portfolio, with the deal to be named Malt Hill No.2 plc. The book building process is now underway, with pricing expected later this week.
UKML : UK Mortgages in Keystone Property Finance deal