Permanent TSB lines up Cerberus for UK buy-to-let sale, sources say
The US private equity group has emerged as a frontrunner for the portfolio, a report says
Permanent TSB is nearing an agreement to sell the remainder of itsCapital Home Loans (CHL) mortgage portfolio to Cerberus Capital Management,Reuters has reported, citing three people with knowledge of the situation.
The US private equity group is believed to have been selected as a preferred bidder for the mostly buy-to-let British mortgage book, which totals about £2.5 billion. While the sale is not yet finalised,Reuters said Cerberus is understood to have emerged as a frontrunner for the portfolio.
In March 2015, Cerberus bought the other half of the CHL's assets, which totalled £2.5 billion. The group also bought the legal CHL entity as part of the transaction.
PTSB was originally aiming to sell the rest of the loan book by the middle of this year under the terms of a deleveraging programme agreed with the European Commission but the UK decision to leave the European Union in the June referendum created uncertainty around the sale.
Related Stories
Permanent TSB launches new current account that pays customers to use it
