Pimco strikes deal for £5bn of Kensington Mortgage’s home loans

Pimco, the world’s largest bond investor, has agreed a deal for £5bn of Kensington Mortgage’s home loans, The Mail on Sunday has reported.

Last month, Barclays snapped up specialist lender Kensington in a £2.3bn deal, part of a scramble for mortgage books as interest rates rise.

The business, which is based in Maidenhead and has about 600 employees, services approximately £8.7bn of third-party mortgages in addition to its own mortgage portfolio.

Barclays agreed a £2.3bn deal for Kensington last month

Sources have now told The Mail on Sunday that investment giant Pimco has signed a deal to buy the loans Barclays did not acquire from Kensington’s owners – private equity group Blackstone and investment firm Sixth Street.

The mortgage book comprises between £4bn and £5bn of securitised loans signed before October 2021.

Goldman Sachs advised on the deal and two sources told The Mail on Sunday that they believed the investment bank may take a stake in the portfolio acquired by Pimco. 

The firm, owned by German insurer Allianz, has traditionally invested in bonds. But with interest rates so low in recent years, it has sought assets with a higher return such as real estate. 

All parties declined to comment. 

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