Home Capital to sell $1.2 bln commercial mortgage book: Reuters
Canadian lender Home Capital Group Inc said it would sell a portfolio of commercial mortgage assets valued at $1.2 billion (US$904 million) to real estate private equity firm KingSett Capital, Reuters reported. Proceeds from the sale will bolster its liquidity and trim outstanding debt on a $2 billion emergency facility it agreed with the Healthcare of Ontario Pension Plan (HOOPP) in April. HOOPP's expensive bridge financing came with an effective interest rate of 22.5 percent on the first $1 billion drawn down. That affected the company's ability to originate new mortgages since it could not afford to lend money at lower rates than its cost of borrowing.
20 June 2017•2 mins read
