LONDON, Oct 4 (IFR) - Ireland's Permanent TSB is nearing an
agreement to sell the remainder of its Capital Home Loans
mortgage portfolio to Cerberus Capital Management, according to
three people with knowledge of the situation.
The US private equity group is understood to have been
selected as a preferred bidder for the UK portfolio, the people
said. The mostly buy-to-let mortgage book totals about £2.5bn.
While the sale is not yet finalised, Cerberus is understood
to have emerged as a frontrunner for the portfolio, which PTSB
is trying to sell as part of a wider deleveraging effort.
In March 2015, Cerberus bought the other half of the CHL's
assets, which totalled £2.5bn. The group also bought the legal
CHL entity as part of the transaction.
PTSB was originally aiming to shed the rest of the book by
mid-2016 under the terms of a deleveraging programme agreed with
the European Commission.
However, in its half-year 2016 statement, the lender said
the timing of the sale was "uncertain due to UK's EU referendum
outcome" and it was engaging with the authorities "in relation
to its Restructuring Plan Commitments".
PTSB declined to comment. Cerberus did not immediately
respond to a request for comment.
Last year, Cerberus also purchased some £13bn in Northern
Rock mortgages from the UK government, securitising the bulk of
them earlier this year.
The group is also in the process of securitising a part of
the CHL mortgages it purchased last year.
(Reporting by Mariana Ionova, editing by Robert Smith)