Charter Court Financial Services auction sunk by Brexit fears
The auction of Charter Court Financial Services has collapsed due to concerns over the impact of a Brexit on the UK housing market.
Bidders were told the sale process has been abandoned in recent days, it was first reported by Sky News.
BC Partners, Varde Partners and Warburg Pincus were among the buyout firms interested in Charter Court Financial Services, owner of the Exact and Precise Mortgage brands and one of the UK’s fastest-growing buy-to-let mortgage lenders.
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Elliott Associates, the hedge fund which owns a controlling stake in the lender, had given Charter Court a price-tag of 400m, though tabled bids had fallen short of this mark.
There have been a raft of warnings over the potential knock on effect of UK’s European Union membership referendum, and last month ratings agency Moody’s warned a vote to leave would lower housing demand, drive down the cost of rent and push up vacancies.
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Charter Court made a profit after tax of £21.4m in 2015, and is expected to double that this year.