LendInvest has sold a £100m buy-to-let (BTL) property portfolio to J.P. Morgan, in a move that is expected to generate a profit before tax of £1.6m for the Aim-listed lender.
The sale will effectively extend an existing Separate Account Mandate which LendInvest signed with J.P. Morgan in January 2021, from £625m to £725m.
LendInvest said that the transaction is in line with its strategy of transferring assets under management originated via its Genesys platform into third party accounts and fund structures. The platform added that similar transactions may be carried out in future.
In a message to shareholders, LendInvest said that the investment will expand its capacity to lend in the BTL market, while providing J.P. Morgan with exposure to BTL mortgages which have been originated via LendInvest’s proprietary technology platform.
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“The sale is an opportunity to deepen our Separate Account with J.P. Morgan, made possible by strong market conditions and good performance in our buy-to-let portfolio over recent months,” said Rod Lockhart, chief executive of LendInvest.
“It is representative of our continued momentum in attracting some of the world’s most sophisticated investors. Genesys, our proprietary technology platform, and broker-focused model allows LendInvest to efficiently originate property finance loans, providing partners with access to an asset class with attractive risk-adjusted returns.
“This transaction reflects our intentions at IPO to move more assets off our balance sheet over time, seek to take these profitable opportunities when they present themselves, and strengthen our funds management business model.”
LendInvest started trading on London’s Aim market on 14 July 2021.
In August, the lender inked a £150m agreement with Barclays and HSBC to provide short-term finance to property entrepreneurs around the UK.
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