In a statement given on Friday, the lender said it would pay approximately £ 2.3 billion ($ 2.8 billion) to buy the specialist mortgage lender that is owned by Sixth Street and Blackstone Inc. The acquisition portrays one of Barclays’ largest recent transactions and a substantial bet on the property market.
Kensington, which is located in Maidenhead of England, has around 600 employees. It has approved approximately £ 1.6 billion of mortgages in the year to March 31. As part of the agreement, Barclays Bank UK will also acquire a portfolio of UK mortgages valued at approximately £ 2 billion by the end of the year.
According to its website, Kensington targets self-employed individuals, people with multiple incomes, and those over 55, group major banks often struggle to reach. It was listed on the London Stock Exchange from 2000 until 2007 and issued mortgage bonds on a regular basis in the UK market.
The UK housing market is one of the most important business sectors for British lenders. As interest rates rise and warnings multiply that the economy is heading for recession, the market has begun to cool.
As a result of the acquisition, the British bank’s CET1 ratio – a key measure of capital strength – is expected to drop by approximately 12 basis points. It is expected to be completed late this year or early next year, subject to regulatory approval.
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