TIDMLINV
RNS Number : 8982A
Lendinvest PLC
30 May 2023
LEI: 213800NWMK3O4UWP9N91
30 May 2023
LendInvest plc
LendInvest sells c.GBP250 million Buy-to-Let residential
mortgage portfolio
LendInvest plc (AIM: LINV; "LendInvest" or the "Group") the UK's
leading platform for mortgages, today announces the sale of a
portfolio of Buy-to-Let residential mortgages (the "Portfolio") to
Chetwood Financial Limited (the "Buyer") for a cash consideration
of GBP243 million inclusive of the proceeds from cancelled interest
rate derivatives (the "Transaction"). Following completion of the
Transaction, LendInvest will continue to manage and service the
Portfolio on behalf of the Buyer.
This sale is another demonstration of LendInvest's commitment to
optimising its funds under management, while at the same time
reducing the proportion of its platform assets under management on
its balance sheet. The Portfolio comprises mortgages that
originated from 1 March 2022 to 30 November 2022. Within this
timeframe, there was a substantial rise in overnight indexed swap
rates due to increases made to the base rate, which rose from 0.5%
to 3.0%. As a result, the profitability of these mortgages was
negatively affected. The proceeds from the Transaction will be used
to repay the facilities that financed the assets, which allows that
capital to be redeployed to originate new mortgages with stronger
margins.
The book value of the Portfolio as at 26 May 2023 was c.GBP250
million. As such, a net pre-tax loss on the sale of the Portfolio
and the cancellation of the related derivatives is estimated to be
around GBP10.5 million (subject to audit) which will be recognised
through the P&L in the year ended 31 March 2024. This largely
offsets the net pre-tax profit of GBP10.8 million generated from
the sale of residual economic interest announced on 19 April 2023
leaving the P&L impact marginally positive.
Commenting on the Transaction, Rod Lockhart, CEO of LendInvest,
said: "This transaction demonstrates our proactive approach to
capital management and supports our longer term strategy to manage
an increasing proportion of platform assets for third parties. It
also initiates a new partnership, adding to a growing list of
global financial institutions choosing to back our mortgage
products. We believe the diversity, sophistication and continued
commitment of our funding partners is a powerful demonstration of
their trust in our capabilities."
Enquiries:
Rod Lockhart, Chief Executive Officer
Alex Dee, Head of Investor Relations
Leigh Rimmer, Head of External Communications +44 (0)20 7353
investorrelations@lendinvest.com 4200
Panmure Gordon (NOMAD and Joint Broker) +44 (0)20 7886
Atholl Tweedie / Stephen Jones / Tom Scrivens 2500
----------------
finnCap Limited (Joint Broker) Jonny Franklin-Adams +44 (0)20 7220
/ Tim Redfern 0500
----------------
Teneo (Financial PR) +44 (0)20 7353
Tom Murray / Ed Cropley / Olivia Lucas 4200
About LendInvest
LendInvest is a leading platform for mortgages in the United
Kingdom. Since inception we have developed proprietary technology
and digital solutions that have allowed us to capture market share
from incumbents and attract significant third-party capital.
We use our technology to disrupt the GBP1.7 trillion* property
finance market which is dominated by manual paper processes and
poor customer experience. Our platform, unencumbered by legacy
systems, offers attractive products and pricing to borrowers and
intermediaries through a seamless and customer-focused process. In
addition, it also provides us with a highly scalable origination
platform for future growth.
Experts in Real Estate investment, we have designed a variety of
solutions and products for our investors. These range from funds
and separate accounts to financial partnerships and RMBS. These
products are tailored to address their specific risk return and
investment criteria. Through the platform, investors from around
the world gain exposure to attractive UK property finance assets
without requiring them to establish direct lending operations or
borrower services.
Our innovative business model is underpinned by our proprietary
end-to-end technology infrastructure, which facilitates operating
leverage and delivers better pricing for our customers. This drives
efficiency and underpins our business' roadmap for growth.
*Source, FCA -The outstanding value of all residential mortgage
loans was GBP1.7 trillion at the end of Q4 2022.
www.lendinvest.com | @lendinvest
Important Notices
The information contained within this announcement is deemed by
LendInvest to constitute inside information as stipulated under the
UK Market Abuse Regulation. By the publication of this announcement
via a Regulatory Information Service, this inside information is
now considered to be in the public domain. The person responsible
for arranging for the release of this announcement on behalf of
LendInvest is Rod Lockhart.
The information contained in this announcement is for
information purposes only. This announcement has been prepared in
accordance with English law, the UK Market Abuse Regulation and the
AIM Rules for Companies and information disclosed may not be the
same as that which would have been prepared in accordance with the
laws of jurisdictions outside England.
Subject to the requirements of the UK Market Abuse Regulation
and the AIM Rules for Companies, the delivery of this announcement
shall not create any implication that there has been no change in
the affairs of LendInvest since the date of this announcement or
that the information in this announcement is correct as at any time
subsequent to its date.
Forward-looking statements
Certain statements in this announcement are forward-looking
statements. In some cases, these forward looking statements can be
identified by the use of forward looking terminology including the
terms "anticipate", "believe", "intend", "estimate", "expect",
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actual results, performance or achievements of LendInvest to be
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statement is based on information available to LendInvest as of the
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or revise any forward-looking statement, whether as a result of new
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