Skip to content

Allen & Overy advises on record-breaking GBP13bn sale of Northern Rock mortgages

Related people
Salim Nathoo
Salim Nathoo

Partner

London

View profile →

Croker Annabelle
Annabelle Croker

Partner

London

View profile →

McKimm Daniel
Daniel McKimm

Partner

London

View profile →

Challen Lydia
Lydia Challen

Partner

London

View profile →

13 November 2015

​Allen & Overy said today the record-breaking sale of GBP13 billion asset portfolio, including mortgages acquired by the UK government during the financial crisis, marked a key milestone for the government and UK taxpayers. 

Following a highly competitive bid process UK Asset Resolution Limited (UKAR) has agreed to sell a GBP13bn asset portfolio to affiliates of Cerberus Capital Management LP. The total portfolio includes GBP12bn of loans within the Granite securitisation vehicle, plus a further GBP1bn of non-Granite assets. The sale comprises performing and non-performing residential mortgages and unsecured loans from the legacy book of NRAM, the former Northern Rock mortgage business. It is based on the portfolio position as at 30 June 2015, from which point the buyer acquired the risks and rewards of ownership. 

Allen & Overy advised the financing banks in respect of the agreement by Cerberus to acquire the shares and assets of NRAM plc from UKFI. The team was led by securitisation partner Salim Nathoo, and included banking partners Trevor Borthwick and Ian Powell, corporate partner Annabelle Croker, real estate partner Dan Mckimm and tax partner Lydia Challen 

Salim Nathoo, Securitisation partner at Allen & Overy, commented: “This is a significant transaction in the post-financial crisis world, not only as it provides premium to book value for both the government and UK taxpayers, but also highlights growing demand for assets and confidence in the market.” 

This deal follows Allen & Overy’s work on the GBP2.7bn sale by UKAR of residential mortgages in 2014. 

For further information, please contact Susanna Robinson, susanna.robinson@allenovery.com on +44 (0)20 3088 3918.