REG - Lendinvest PLC LendInvest PLC-LINV - LendInvest sells Buy-to-Let mortgage portfolio

LendinvestAnnouncement

30/05/2023 07:15

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RNS Number : 8982A  Lendinvest PLC  30 May 2023

 

LEI: 213800NWMK3O4UWP9N91

30 May 2023

LendInvest plc

LendInvest sells c.£250 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 £243 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.£250 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 £10.5 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 £10.8 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                                    +44 (0)20 7353 4200

 Alex Dee, Head of Investor Relations

 Leigh Rimmer, Head of External Communications

 investorrelations@lendinvest.com
 Panmure Gordon (NOMAD and Joint Broker)                                  +44 (0)20 7886 2500

 Atholl Tweedie / Stephen Jones / Tom Scrivens
 finnCap Limited (Joint Broker)    Jonny Franklin-Adams / Tim Redfern     +44 (0)20 7220 0500

 Teneo (Financial PR)                                                       +44 (0)20 7353 4200

 Tom Murray / Ed Cropley / Olivia Lucas

 

 

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 £1.7 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
£1.7 trillion at the end of Q4 2022.

 

www.lendinvest.com (http://www.lendinvest.com) | @lendinvest
(https://twitter.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", "may", "will", "seek", "continue", "aim",
"target", "projected", "plan", "goal", "achieve" and words of similar meaning
or in each case, their negative, or other variations or comparable
terminology. Forward-looking statements are based on current expectations and
assumptions and are subject to a number of known and unknown risks,
uncertainties and other important factors that could cause results or events
to differ materially from what is expressed or implied by those statements.
Many factors may cause actual results, performance or achievements of
LendInvest to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements. Important
factors that could cause actual results, performance or achievements of
LendInvest to differ materially from the expectations of LendInvest, include,
among other things, general business and economic conditions globally,
industry trends, competition, changes in government and changes in regulation
and policy, changes in its business strategy, political and economic
uncertainty and other factors. As such, undue reliance should not be placed on
forward-looking statements. Any forward-looking statement is based on
information available to LendInvest as of the date of the statement. All
written or oral forward-looking statements attributable to LendInvest are
qualified by this caution. Other than in accordance with legal and regulatory
obligations, LendInvest undertakes no obligation to publicly update or revise
any forward-looking statement, whether as a result of new information, future
events or otherwise. Nothing in this announcement should be regarded as a
profit forecast.

 

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