GE Capital has confirmed it has received an offer for a portfolio of French prime mortgages which, once approved, would complete the firm’s departure from the French consumer finance market.
The value of the portfolio was not disclosed, but the firm reported it has now completed $192 billion of sales of its assets since its announcement last year that it was divesting its asset management business. Included in that the figure is the recent French mortgage portfolio sale. The identity of the buyer was not disclosed either, but it has been noted that it is a recently established French FCT mutual securitisation fund and is expected to be closed in the fourth quarter of 2016, pending regulatory approval.
So far, $169 billion of the sales have been closed as it reported confidence that it will reach a target of $200 billion in sales of its businesses by the end of the year. It predicted that once the plan is finalised, it will deliver $35 billion in dividends to GE.
The sale of French prime mortgages follows the recent sale of a Portuguese mortgage portfolio loan book valued at €80 million to Incus Capital, a Madrid-based specialised credit firm.
“We are pleased to receive a binding offer for our French prime mortgage portfolio. If completed along with the potential sale of GE Money Bank France/DOMs announced on 23 June, this would represent GE Capital’s exit from French consumer finance,” said Keith Sherin, chief executive of GE Capital.