Firstfolio acquires non-bank lender Calibre
Mortgage provider and financial services company Firstfolio, has announced the completion of its 100 per cent acquisition of non-bank mortgage lender, Calibre Financial Services.
The $13 million dollar deal, funded by a combination of cash and long-term debt from the Commonwealth Bank will enable Firstfolio to grow into the non-bank lending space, leveraging Calibre’s proprietary lending and trust management platform, while further diversifying Firstfolio’s revenue streams.
These include the provision of professional loan and trust management services in Australia and internationally.
Sydney-based Calibre is a non-bank operating with a warehouse funding line from the Westpac. It issued its first mortgage-backed security to institutional investors in October 2007.
“The acquisition of Calibre marks a transformational change for Firstfolio, giving us the scale and capability to enter the non-bank lending space, which had been largely vacated in Australia following the global financial crisis,” said Mark Forsyth, Firstfolio’s chief executive.
“Through the acquisition, we gain a securitised lending and trust management platform, allowing us to diversify our business into the trust management market while giving us additional options over funding, product, and pricing as a non-bank lender.”
As part of the acquisition, Westpac has agreed to renew the existing Calibre facility at market terms and increase the warehouse facility from $300 million to $400 million. This funding line from Westpac supplements the wholesale funds provided to Firstfolio by ING, Advantedge (a division of the NAB), and Bendigo and Adelaide Bank.
Forsyth announced that Calibre will sit under the newly formed Firstfolio Capital division, which is expected to contribute up to $3 million in operating earnings in its first full year of operation.
- Categories
- Banking
- Tags:
- Firstfolio, Calibre, acquisition, Mark Forsyth
- Author:
- AB+F Online, mdavis@financialpublications.com.au
- Article Posted:
- December 01, 2011
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