UK Asset Resolution announces return of Bradford & Bingley and NRAM Limited to private ownership

UK Government Investments (UKGI) today confirms that UK Asset Resolution Ltd (UKAR) has agreed the sale of the issued share capital and remaining mortgage and loan portfolios of Bradford & Bingley plc (B&B) and NRAM Limited (NRAM) and their subsidiary companies to a consortium of Davidson Kempner Capital Management LP (Davidson Kempner) and Citibank (Citi) with financing provided by funds managed by Pacific Investment Management Company LLC (PIMCO). Total proceeds of the sale for Government will be c.£5.0bn.

The transaction has been agreed and will complete in two stages. The first stage is the sale of the loans to Citi which is expected to complete within the next few weeks. The second stage is completion of the sale of the companies to Davidson Kempner, which is subject to the receipt of regulatory approvals and is expected to take place in the summer.

This sale represents a major milestone, returning B&B and NRAM, along with all of their remaining loan assets, to private ownership. As the final sale of B&B and NRAM assets acquired by the government during the financial crisis of 2007-08, this transaction completes our programme of the sale of UKAR assets and brings to an end the government’s ownership of B&B and NRAM with the taxpayer fully repaid.

A key consideration in selecting the successful bidder was the continued fair treatment of customers. The transaction results in a change in ownership of B&B and NRAM but does not involve any of their c.29,000 customers moving to a new lender. There will be no changes to the terms and conditions of any loans as a result of this transaction and borrowers will continue to receive the same protections for the lifetime of their mortgage as they currently receive under UKAR ownership and their right to re-mortgage will be unaffected.

Further information can be found in the HM Treasury and UKAR press releases which can be found on:


Notes to Editors:
UKGI was independently advised by Moelis on the divestment.

UKAR Ltd will remain in government ownership until such time as it is fully wound down and will be responsible for managing outstanding residual and contingent liabilities. It will have no employees, with all activity undertaken on an outsourced basis by PricewaterhouseCoopers LLP (PwC). PwC was appointed following a competitive tender process in line with public sector procurement requirements.