Australia's N1 Holdings Ltd. agreed to sell the rights to its mortgage trail commissions book to Giant Finance Group for approximately A$2.2 million.
The price represent roughly 2x the value of the Finsure-aggregated trail commissions that N1 Holdings received in the fiscal year ended June 30, 2018. Finsure is the company's mortgage aggregator.
Under the deal, only N1 Holdings' rights to the existing book of trail commission will be sold. There will be no changes to the company's existing residential mortgage brokering business and its rights to upfront and trailing commissions in respect of future clients.
The transaction is expected to close by August-end, subject to approval of Finsure. N1 Holdings will use proceeds from the deal to grow its commercial lending activities and for working capital.