General Electric (GE) has agreed to sell a $5.9bn worth of first lien mortgage loan portfolio from its UK home lending business to an investment consortium comprising Blackstone, TPG Special Situations Partners, and CarVal Investors.
The deal substantially completes the exit of the company’s UK home lending business that is valued at $13bn, GE said in a statement.
The company has not yet revealed any other terms of the deal, which is scheduled to close in December 2015.
GE Capital chairman and CEO Keith Sherin said: "This transaction represents the sale of almost all our remaining UK mortgage business, which successfully provided financing for UK home owners.
"We began this year with around US$13 billion of ENI and when this transaction closes, we will have approximately US$0.4 billion of ENI remaining in our UK mortgage business. This is an important step as we continue to execute on our plan to sell most of the assets of GE Capital."
The latest sale forms part of GE’s strategy to simplify operations through the sale of most of its GE Capital assets and instead concentrate on its industrial businesses.
As part of this strategy, GE will retain the financing verticals that relate to GE’s industrial businesses.