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UK Asset Resolution (UKAR) is a British financial services holding company with headquarters in the
On 22 June 2012
West Yorkshire
West Yorkshire is a metropolitan and ceremonial county in the Yorkshire and Humber Region of England. It is an inland and upland county having eastward-draining valleys while taking in the moors of the Pennines. West Yorkshire came into exi ...
village of Crossflatts
Crossflatts is a ribbon development in Airedale along the old route of the A650 road between Bingley and Keighley, in the Metropolitan Borough of Bradford, West Yorkshire, England. The opening of the Aire Valley Trunk road in 2004 has seen a r ...
(near Bradford & Bingley's former headquarters in Bingley
Bingley is a market town and civil parish in the metropolitan borough of the City of Bradford, West Yorkshire, England, on the River Aire and the Leeds and Liverpool Canal, which had a population of 18,294 at the 2011 Census.
Bingley railwa ...
). It was established in October 2010 as a bad bank to hold the two run-off elements, Bradford & Bingley (including the Mortgage Express brand) and NRAM plc
Landmark Mortgages Limited, formerly Northern Rock (Asset Management) plc and later NRAM plc, is a British asset holding and management company which was split away from the Northern Rock bank in 2010. It was publicly owned through the British ...
(previously known as Northern Rock Asset Management), of the two nationalised banks in the wake of the financial crisis of 2007 and 2008.
UKAR manages an asset book in run-off, with the combined entity having a total mortgage book of £4.7bn (as at 31 March 2020), down by £94.7bn since its establishment in 2010.https://www.ukar.co.uk/~/media/Files/U/Ukar-V3/documents/ukar-factsheet-2020.pdf
History
On 22 June 2012 Virgin Money
Virgin Money is a financial services brand used by two independent brand-licensees worldwide from the Virgin Group. Virgin Money branded services are currently available in Australia and the United Kingdom. The brand formerly operated in South Af ...
, owners of the Northern Rock bank, acquired the remainder of the NRAM Gosforth site, and the following month UKAR sold £465 million of mortgages from the NRAM portfolio to Virgin. UKAR left their Gosforth
Gosforth is a suburb of the city and metropolitan borough of Newcastle upon Tyne, England. It constituted a separate urban district from 1895 until 1974 before officially merging with the city of Newcastle upon Tyne. In 2001, it had a populati ...
, Newcastle upon Tyne
Newcastle upon Tyne ( RP: , ), or simply Newcastle, is a city and metropolitan borough in Tyne and Wear, England. The city is located on the River Tyne's northern bank and forms the largest part of the Tyneside built-up area. Newcastle is ...
(Northern Rock
Northern Rock, formerly the Northern Rock Building Society, was a British bank. Based at Regent Centre in Newcastle upon Tyne, United Kingdom, Northern Rock was originally a building society. It demutualised and became Northern Rock bank i ...
/ Regent Centre
Regent Centre is a large business park in Gosforth, Newcastle upon Tyne, England. The business park is home to a variety of companies, including banking group Virgin Money whose Head Office is located on the site. The centre has its own transpor ...
) offices in 2013, and moved those remaining staff to Doxford and Bingley.
In 2011 UKAR repaid £2.15 billion to taxpayers and in 2012 paid a further £4 billion.
In August 2013, the bank said it has now returned £6.6 billion to the government. It owed £48.7 billion when it was created in October 2010.
In 2014 £2.7 billion of the mortgage book was agreed to be sold to Commercial First, a consortium led by JP Morgan.
In 2015 UKFI announced that it would seek expressions of interest for the divestment of mortgage servicing capabilities of the NRAM business as well as the Granite securitisation vehicle. UKFI appointed Moelis & Company
Moelis & Company is a global investment bank that provides financial advisory services to corporations, governments, and financial sponsors. The firm advises on strategic decisions such as mergers and acquisitions, recapitalizations and restruc ...
as advisers for the divestments. On 13 November 2015, UKAR confirmed the sale of NRAM's Granite mortgage portfolio to Cerberus Capital Management
Cerberus Capital Management, L.P. is an American private equity firm,Leaders Magazine"Providing Economic Opportunity: An Interview with The Honorable Dan Quayle, Chairman, Cerberus Global Investments, LLC". specializing in distressed investing. ...
for £13 billion.
On 31 March 2017 it was announced by HM Treasury
His Majesty's Treasury (HM Treasury), occasionally referred to as the Exchequer, or more informally the Treasury, is a department of His Majesty's Government responsible for developing and executing the government's public finance policy and ...
that the sale of buy-to-let mortgages from the Bradford & Bingley loan book to Prudential plc
Prudential plc is a British multinational insurance company headquartered in London, England. It was founded in London in May 1848 to provide loans to professional and working people.
Prudential has dual primary listings on the London Stock E ...
and funds managed by The Blackstone Group
Blackstone Inc. is an American alternative investment management company based in New York City. Blackstone's private equity business has been one of the largest investors in leveraged buyouts in the last three decades, while its real estate b ...
had been agreed for £11.8 billion.
On February 26, 2021, UKAR announced the sale of its final assets from Bradford & Bingley and Northern Rock at a price of £5 billion to a consortium of Citibank and Davidson Kempner Capital Management LP. This transaction consisted of two steps: UKAR sold the remaining loan portfolio to Citibank and Davidson acquired the government’s equity in Bradford & Bingley and NRAM. This concluded the government’s ownership of both institutions. UKAR will have no staff going forward but remains a government-owned entity, with PricewaterhouseCoopers
PricewaterhouseCoopers is an international professional services brand of firms, operating as partnerships under the PwC brand. It is the second-largest professional services network in the world and is considered one of the Big Four accounti ...
handling any activities that arise.
See also
*UK Financial Investments
UK Financial Investments (UKFI) was a limited company set up in November 2008 and mandated by the British government to manage HM Treasury's shareholdings in the Royal Bank of Scotland Group (RBS) and in UK Asset Resolution, which held the residu ...
* Bad Bank
References
External links
* {{authority control Companies based in the City of Bradford Government-owned companies of the United Kingdom HM Treasury Bingley British companies established in 2010 Financial services companies established in 2010