LONDON, UK: LendInvest plc (AIM: LINV), the UK’s leading platform for mortgages has, through its LendInvest BTL Limited subsidiary, successfully completed the sale of its non-risk retention residual economic interest in the Mortimer BTL 2020-1 plc securitisation for a cash consideration of £7.0 million.
Citi’s secondary trading desk managed the sale process and purchase for onward sale.
In line with the Group’s strategy to optimise its funds under management, while at the same time moving more assets off its balance sheet, the transaction will result in a reduction in the Group’s gross loans and advances of £212 million. The transaction will generate a net pre-tax gain of £1.4 million for FY2023 in line with management’s expectations.
The difference between the cash consideration and the Group’s net gain is driven by gross profit lost in the final month of the financial year, and the impact of no longer consolidating the Mortimer BTL 2020-1 plc securitisation entity into the Group’s results.