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Australia's Top Online Lender @FirstmacLimited For Sale by $GS at A$500M

Australia's Top Online Lender @FirstmacLimited For Sale by $GS at A$500M

Goldman Sachs Asset Management itself is said to be considering exiting its Australian equities business, as reported by ExitHub. Goldman Sachs, which oversees about A$9 billion ($6.6 billion) in Australia, is reviewing options including a sale or a management buyout. Its Australian equities team is led by Dion Hershan in Melbourne. Firstmac, owned by its founder and managing director Kim Cannon, and a premier sponsor of the Brisbane Broncos Rugby League Football Club, has A$8 billion in mortgages under management, with 35 years experience. The company wrote over 84,000 home loans in the past 15 years and made A$250 million in cash investments through offices in Sydney, Melbourne, Brisbane, the Gold Coast and Singapore. The company self-funds its operations through the offering of residential mortgage-backed securities (RMBS). Firstmac has publicly issued over A$16 billion in RMBS bonds since 2003, and is one of the top 10 RMBS issuers in Australia. FirstMac has earned a rating of ‘Strong’ and its outlook has been deemed as ‘Stable’ by Standard & Poor’s, for its ability to service loans. Firstmac’s RMBS issues are mainly secured by mortgages written by its related company loans.com.au, Australia’s biggest online lender. Loans.com.au was founded in 2011, and has grown rapidly. It now reportedly accounts for three-quarters of new Firstmac loans. Mortgages issued by Firstmac and loans.com.au reportedly have a level of arrears of only 0.47%, less than half the industry average of 1.11%. Loans.com.au has no branch network and processes loan applications exclusively online and through its call center, enabling it to offer lower interest rates than the major banks. Loans.com.au has five stars for Outstanding Value from Canstar, and was named the Best of the Best Cheapest Home Loan and Cheapest Flexible Home Loan 2015 by Money magazine. It holds Financial Review Smart Investor’s Blue Ribbon Award for the Best Property Investment Loan – Variable 2015. In late May, Firstmac raised A$500 million through an RMBS issue at a margin of 150 basis points, or 1.50% above the Bank Bill Swap Rate (BBSW). Firstmac’s latest RMBS pricing was similar to recent comparable bank deals, although margins have been moving higher in the RMBS market overall. ING Direct reportedly paid a margin of 146 bps on an RMBS issue in March, and Resimac paid 139 bps in February.]]>

$FCF Capital to Acquire Canada's No. 1 Mortgage Broker DLC Group for CAD$74M

$FCF Capital to Acquire Canada's No. 1 Mortgage Broker DLC Group for CAD$74M

FCF Capital Inc. (TSXV: FCF) agreed to acquire a 60% majority interest in Canada’s largest mortgage brokerage firm, Vancouver-based Dominion Lending Centres (DLC), for approximately CAD$74 million. The purchase price consists of CAD$61,487,788 in cash, and 71,428,572 newly issued class A common shares of FCF at an ascribed price of CAD$0.175 per share. On Friday, May 13, FCF shares closed up over 15% at CAD$0.265 after an early morning voluntary trading halt due to the pending news was resumed by 2:30pm, giving the company a market value of CAD$43.35 million. DLC’s current owners, Gary Mauris, Christopher Kayat and certain other minority shareholders, will retain a 40% interest in DLC, and will continue to manage the day-to-day business and operations of DLC. “This is a tremendous opportunity for Dominion Lending Centres to continue to provide exceptional mortgage services for Canadians and expand our reach into other growth areas,” says Gary Mauris, President and CEO of Dominion Lending Centres. “We will continue to operate under the DLC group of companies with the same values, principles and operating approach that has made DLC Canada’s number one mortgage company.” The move comes after DLC closed the acquisition of Mississauga-based Mortgage Architects, with 1,287 mortgage brokers and agents, from Pacific Mortgage Group, on December 31, 2015. The combination turned DLC into the No. 1 mortgage originator in Canada. In 2013, DLC had acquired Mortgage Centre Canada from the Canadian Imperial Bank of Commerce. “We work with all the major banks, trust companies and credit unions across Canada,” Mauris said. “We originate loans underwritten by those lenders. They hold the loans on their balance sheets.” “FCF is delighted that the acquisition of a majority interest in DLC could form FCF’s first investment under its new investment thesis,” said Stephen Reid, CEO of FCF. The cash portion of the purchase price will be funded by FCF’s cash on hand, the net proceeds from FCF’s recently completed offering of subscription receipts, and a CAD$20 million demand loan facility provided by Bridging Finance Inc. FCF has paid to DLC a CAD$2.1 million deposit, which will be credited to the cash portion of the purchase price at closing. In the event of a breach of contract by FCF, or if the deal fails to close by July 29, 2016, FCF will forfeit its deposit. After the closing, DLC will be overseen by a combined board of directors, consisting of Gary Mauris, Christopher Kayat and three nominees of FCF, initially Stephen Reid, Ron Gratton and James Bell. Completion of the transaction is subject to a number of conditions, including the approval of the TSX Venture Exchange. The deal is expected to close before June 30, 2016, subject to an outside date of July 29, 2016. DLC group of companies is Canada’s leading and largest mortgage brokerage with $33 billion in funded mortgages in 2015. DLC group of companies operates through three main subsidiaries, Dominion Lending Centres, Mortgage Centre Canada and Mortgage Architects and has operations in all 13 provinces and territories. DLC group of companies’ extensive network includes over 5,000 agents, 325 franchises and 650 locations. Headquartered in British Columbia, DLC group of companies was founded in 2006 by Gary Mauris and Chris Kayat. Gary Mauris is the co-founder and President & CEO of Dominion Lending Centres; CEO of Mortgage Centre Canada; and chairman of Mortgage Architects. Together, these companies account for almost 35% of all consumer mortgages in Canada. He is a serial entrepreneur, having sold two prior companies to the public market. He has been recognized as a finalist for the Ernst & Young Entrepreneur of the Year in 2011 and earned the 2016 Tri-Cities Chamber of Commerce Business Leader of the Year, and is frequently interviewed by Canadian media. His companies have also won multiple industry awards. Chris Kayat is the co-founder and Executive VP of Dominion Lending Centres and is also an owner and Director of Mortgage Centre Canada (MCC) and Mortgage Architects. Prior to DLC and MCC, he was the largest Royal LePage owner in Western Canada by market share and overall agent count. FCF Capital Inc. is a Calgary, Canada-based private equity firm which employs a passive and long-term investment approach by pursuing majority interest acquisitions of cash flow positive middle-market privately held entities. The company focuses on investments in equity, debt, or other securities of publicly traded companies or private businesses, and offers financing services in exchange for pre-determined royalties or distributions. It also seeks to acquire all or part of one or more businesses, portfolios, or other assets. FCF Capital is listed on the TSX Venture Exchange as a Tier 1 investment issuer. FCF was founded in 1998 and is headquartered in Calgary, Alberta, Canada. The company was formerly known as Brilliant Resources Inc. and changed its name to FCF Capital Inc. in June 2015. FCF was previously a junior resource company in the business of acquiring mineral rights. It had operations in the Republic of Equatorial Guinea and related to the Michikamau property in Newfoundland and Labrador.]]>

Banco Hipotecario's Elsztain Buys Iconic Buenos Aires Mercado Del Plata for $68M

Banco Hipotecario's Elsztain Buys Iconic Buenos Aires Mercado Del Plata for $68M

“The auction was within the expected parameters, because the $42 million base was too low, I think it reached a fair price,” said the head auctioneer of Banco Ciudad in charge of the bidding, Ricardo Vitaliti. “The proceeding became somewhat complicated because of disparate bidding figures (buyers bid the sales price up by $114.000 or $116,000), while I expected more round numbers, but it is also true that $114,000 is a lot of money.” He further commented that this was his personal record sale on auction: “In 2009 I sold the largest lot of Catalinas for $46 million, but having a sale of this size under the hammer is something to be proud of.” Banco Ciudad president Javier Ortiz Batalla, said that the auction “has been a very transparent process, all participants were very pleased,” and stressed that “the final value of the sale has significantly exceeded expectations.” The money to be received by the Executive branch of the City of Buenos Aires will be used to repay debt acquired for its relocation to the current headquarters of the City Government’s Head Office at Uspallata 3100 in Parque Patricios, a building designed by British architect Norman Foster. The Edificio del Plata occupies half a block between Carlos Pellegrini, Sarmiento, Carabelas passage and Perón streets. It has 42,256 square meters, nine floors and three underground levels, and was re-opened in 1962, to house the offices of the Municipality of Buenos Aires on the upper floors, and a market on the ground floor. In October 2008, during the administration of Mauricio Macri as Mayor of Buenos Aires, now the country’s President, an imposing gigantography of “Speed,” a work of artist Fabian Burgos, was installed on the facade of the building and reproduced in an area of 2992 square meters of micro perforated vinyl fabric. This started a series entitled “Art in La Plata”, which continued in March 2009 with William Ueno’s “Siesta” and in July of that year with Max Gomez Canle’s “Window.” In October 2009, “Terrace” by photographer Marcos López, followed. Finally, in June 2010 the gigantography of “Myths of my Childhood” by Antonio Seguí was mounted. In 2013, the gigantography of Pope Francis was erected on the building’s facade. The Mercado del Plata, the first covered wholesale supply market in the City of Buenos Aires, was originally inaugurated on the site in 1856. old_mercado_del_plataCarts from San Isidro, San Fernando, and the Conchas districts, among others, met at the market to sell their products consisting mainly of wood branches and beams, wood and reeds for ranches, watermelons, melons, peaches, wheat, corn, barley, canary seed, etc. Of those carts, some were parked, especially fruit and corn, and sold retail, placing lanterns on them at night. As the population and city outer limits began to grow, the carts were relocated to the periphery of Buenos Aires. Between 1947 and 1962, the “Edificio del Plata” was built on the site.]]>