Pepper Home Loans has significantly strengthened its position in the non-bank lending space with its move to acquire GE Money's $5 billion residential portfolio.
Speaking about the acquisition, Pepper’s executive chairman Mike Culhane said the transaction would be transformational for the non-bank.
“The acquisition of the GE Capital home loan portfolio will accelerate Pepper’s expansion into niche segments of the prime residential lending market in Australia and New Zealand,” Mr Culhane said.
Pepper managing director Patrick Tuttle said the acquisition would accelerate the lender’s long term growth plans within the Australian and New Zealand residential lending space.
“It presents us with a unique opportunity to further expand our existing business model into prime residential lending extending our specialist product suite. This enhanced offering will be leveraged through our growing national broker distribution network utilising our core credit underwriting and loan servicing expertise,” he said.
Backed by a consortium of institutional banks and mezzanine investors, Pepper will initially acquire the GE Capital loan portfolio through a series of warehouse financing facilities.
"The support of our senior facility providers, Commonwealth Bank of Australia, National Australia Bank and Westpac has been instrumental in enabling Pepper to finance this milestone transaction,” Mr Culhane said.