UK Asset Resolution

UK Asset Resolution (UKAR) is a British financial services holding company with headquarters in the West Yorkshire village of Crossflatts (near Bradford & Bingley's former headquarters in Bingley).[1] 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 (previously known as Northern Rock Asset Management), of the two nationalised banks in the wake of the financial crisis of 2007 and 2008.

UK Asset Resolution Limited
TypeState-owned limited company
IndustryFinance
FoundedOctober 2010 (2010-10)
Headquarters
Crossflatts
,
England, UK
Key people
John Tattersall, Chairman
Ian Hares, Chief executive officer
ProductsFinancial services
Total assets£5.1bn (2020)
OwnerHM Government
Number of employees
110 (2020)
ParentUK Government Investments
SubsidiariesUKAR Corporate Services
Websitewww.ukar.co.uk

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.[2]

History
The 'Northern Rock' buildings in Gosforth, Newcastle upon Tyne which housed some of UKAR's staff.

On 22 June 2012 Virgin Money, 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.[3] UKAR left their Gosforth, Newcastle upon Tyne (Northern Rock / Regent Centre) offices in 2013, and moved those remaining staff to Doxford and Bingley.[4]

In 2011 UKAR repaid £2.15 billion to taxpayers and in 2012 paid a further £4 billion.[5][6]

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.[7]

In 2014 £2.7 billion of the mortgage book was agreed to be sold to Commercial First, a consortium led by JP Morgan.[8]

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 as advisers for the divestments.[9] On 13 November 2015, UKAR confirmed the sale of NRAM's Granite mortgage portfolio to Cerberus Capital Management for £13 billion.[10]

On 31 March 2017 it was announced by HM Treasury that the sale of buy-to-let mortgages from the Bradford & Bingley loan book to Prudential plc and funds managed by The Blackstone Group had been agreed for £11.8 billion.[11][12]

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 handling any activities that arise.[13]

See also

References
  1. "UK Asset Resolution Company no. 07301961". Companies House. Retrieved 14 November 2013.
  2. https://www.ukar.co.uk/~/media/Files/U/Ukar-V3/documents/ukar-factsheet-2020.pdf
  3. "Northern Rock sell-off nets extra £538m for taxpayers". BBC News. 23 July 2012. Retrieved 23 July 2012.
  4. "UK Asset Resolution to close Newcastle office". BBC News. 6 December 2011. Retrieved 6 December 2011.
  5. "UKAR Preliminary Results Announcement 2011". UK Asset Resolution Ltd. 2 March 2012. Retrieved 7 May 2012.
  6. "Bradford & Bingley owner repays £4bn to taxpayers". BBC News. 25 March 2013. Retrieved 6 April 2013.
  7. Clare Hutchison (6 August 2013). "UK 'bad bank' repays $2.9 billion to taxpayers in first half". Reuters.
  8. "UK 'zombie' bank sells 2.7 billion pounds of loans to JP Morgan group". Reuters. 14 October 2014. Retrieved 14 October 2014.
  9. "Osborne Says U.K. Plans Faster Sale of Lloyds Shares in 2015". Bloomberg. 18 March 2015. Retrieved 4 April 2015.
  10. Ping Chan, Szu; Wallace, Tim (13 November 2015). "Government sells £13bn of former Northern Rock mortgages to US private equity firm". The Telegraph. Retrieved 13 November 2015.
  11. "Bradford & Bingley asset sale 'raises £12bn for taxpayers'". Sky News. 31 March 2017.
  12. "Bradford & Bingley mortgage sale raises £11.8bn". BBC News. 31 March 2017. Retrieved 31 March 2017.
  13. "UKAR Update: 26 Feb 2021". UK Asset Resolution Ltd. in YPFS Resource Library. 26 February 2021.
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