Japanese firm's £58m to help Portillion launch
Share
Portillion has secured over £58m in investment from SBI Group of Japan and has set a launch date of January 1 2012.
Its accounts for the year ended December 31 2010 reveal SBI Group will fund its working capital requirements to an assumed launch of January 1 and will also provide the necessary tier 1 capital at launch. The would-be lender received £6.5m on April 8 and £51.7m on April 28 2011.
It is awaiting approval from the Financial Services Authority to become a mortgage lender and retail deposit-taker and says it believes there is a gap in the market for an internet-based savings proposition. The accounts show the firm made a £5.1m loss for the year.
Gerald Gregory was appointed chairman of Portillion in February when Stephen Knight stepped down after being diagnosed with a brain tumour.
In a statement in the accounts, Gregory says: “The board remains convinced an opportunity exists for an intermediary-focussed mortgage lender and retail deposit taker.
“We are delighted that SBI Group shares this view and was willing to invest in the company.”
Alan Cleary, managing director of Precise Mortgages, says: “Countries like Japan are looking beyond their borders for mortgage investment opportunities. The US has been stung and is out of the game in terms of investing.
“We are having discussions with a number of potential investors that are located more east than west.”
And Dev Malle, sales and marketing director at Personal Touch Financial Services, says: “From the market’s perspective, a new entrant delivered through individuals who have a solid understanding of market needs is a good thing.”
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
