LendInvest sells £100m BTL portfolio to JP Morgan

LendInvest has revealed it has sold a £100m BTL portfolio to JP Morgan.

The technology driven asset manager for property finance has an ongoing arrangement with JP Morgan to allocate a portion of monthly BTL originations to a separate account mandate that was established in January, with a total capacity of £625m.

The portfolio sale will increase the account’s capacity to £725m.

The sale is expected to generate a net increase of profit before tax for the current financial year of £1.6m.

The transaction is in line with LendInvest's strategy of transferring assets under management originated via its Genesys platform into third-party accounts and fund structures.

Rod Lockhart, chief executive at LendInvest (pictured above), commented: “I am very pleased to be able to announce this transaction so soon after our IPO

“The sale is an opportunity to deepen our separate account with JP Morgan, made possible by strong market conditions and good performance in our BTL portfolio over recent months.

“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."

The news follows the £500m of investment LendInvest secured from JP Morgan in future mortgage originations, expanding its capacity to lend in the UK BTL market.

In August, the lender also announced a £150m partnership with Barclays and HSBC to provide short-term finance to property entrepreneurs across the UK.

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