Investec offloads Irish mortgage business

Investec is to sell its Irish intermediated mortgage business Start along with other Irish mortgages assets to an affiliate of private equity firm Lone Star Funds.

The deal is subject to regulator approval and will see Lone Star take on Start Mortgage’s operation platform, brand, operation and its 70 employees.

Investec’s funding line to its Irish mortgages business, which stood at around £270m at the end of March, will be repaid entirely upon completion of the deal.

The acquisition is expected to be completed at the end of the year. The cost has not been disclosed.

Last week, Investec announced the sale of Kensington Mortgages to investment firms Blackstone and TPG in a deal worth £180m.

An Investec stock exchange announcement says: “The transaction supports Investec’s strategic objective to simplify and reshape its specialist banking business and together with the sale of Kensington Group Limited (still subject to approval) substantially reduces the assets within its legacy non-core business.”