GE to Sell U.K. Home Lending Portfolio

By Anne Steele 

General Electric Co. said Monday it agreed to sell a portfolio of first lien mortgage loans from its U.K. home lending business worth about $5.9 billion to an investment consortium of funds managed by Blackstone, TPG Special Situations Partners and CarVal Investors.

Terms of the deal, expected to close in December, weren't disclosed.

The transaction represents the sale of almost all of the company's remaining U.K. mortgage business, said GE Capital Chief Executive Keith Sherin.

Mr. Sherin said GE Capital began this year with about $13 billion of ending net investment in its U.K. mortgage business and will have about $400 million remaining when the transaction closes.

GE announced earlier this year it is focusing on its high-value industrial businesses and is selling most GE Capital assets. This latest transaction will contribute about $400 million of capital to the overall target of about $35 billion of dividends expected to be paid to GE under the plan.

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(END) Dow Jones Newswires

November 23, 2015 08:18 ET (13:18 GMT)

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