Paragon swoops for £43m RBS loans
Mortgage lender Paragon has acquired a portfolio of loans from The Royal Bank of Scotland (RBS) for £43.2m.
It is the sixth portfolio to have been acquired by the Solihull-based company over the past two years. The deal with RBS comprised unsecured consumer loans.
Payment for the portfolio, which is being financed from Paragon's cash reserves, will total £43.2m. Paragon said it expects the acquisition to be earnings enhancing within the current financial year.
Nigel Terrington, chief executive of Paragon, said: "We are extremely pleased to announce a further loan portfolio acquisition through our investment division, Idem Capital. Our servicing division, Moorgate Loan Servicing, has managed this portfolio of loans for the last two years.
"Paragon, through Idem Capital, has made great progress with its strategy. This is the sixth portfolio acquired since mid-2009, of which four have been acquired in 2011, bringing the total investment to date to £89.5m. We continue to see further attractive portfolio acquisition opportunities."
