The U.K. government vehicle created to manage the mortgagebooks of Bradford & BingleyPlc and the former Northern Rock entered into a seven-year contractwith Australian firm Computershare Ltd. to service a mortgage portfolio covering £30 billion inassets.
Under the terms of the contract announced May 4, willretain the ownership of and ultimate responsibility for the assets, and relatedclients' terms and conditions will remain unaffected. About 1,700 employees ofUKAR will be transferred to Computershare, while UKAR will retain 250 staffmembers.
Credit Suisse acted as adviser for UKAR for the deal withComputershare, which is likely to conclude during the summer.
Additionally, Cerberus Capital Management LP will on May 5 acquireNRAM Plc as part ofthe completion of the sale of a £13 billion mortgage portfolio, originallyowned by Northern Rock and later acquired by the government.Assets and liabilities not included in the sale were transferred to a newlyestablished UKAR unit, known as NRAM (No. 1) Ltd.
Following the transfer of NRAM Plc, the U.K. government willreceive a final sale-related payment of £520 million, and NRAM Plc'snonexecutive directors will stand down. NRAM Plc executives Richard Banks andIan Hares will continue as nonexecutive directors until the final completion ofthe transaction, which is expected to take place during the summer.
Following the final completion, Cerberus Capital Managementwill rebrand the acquired entity, while UKAR will rename the new unit NRAM Ltd.