Paragon acquires unsecured loans from RBS

27th Oct 2011 07:40

Buy-to-let mortgage specialist The Paragon Group of Companies has acquired a portfolio of unsecured consumer loans from The Royal Bank of Scotland. The £43.2m consideration, which is being financed from Paragon's cash reserves, represents the value at which the acquired loans will be taken on to the group's balance sheet. The acquisition is expected to be earnings enhancing to Paragon in the current financial year.Chief executive Nigel Terrington said: "We are extremely pleased to announce a further loan portfolio acquisition through our investment division, Idem Capital. Our servicing division, Moorgate Loan Servicing, has managed this portfolio of loans for the last two years."Paragon, through Idem Capital, has made great progress with its strategy. This is the sixth portfolio acquired since mid-2009, of which four have been acquired in 2011, bringing the total investment to date to £89.5m. We continue to see further attractive portfolio acquisition opportunities."NR