UK Asset Resolution
{{short description|Financial services holding company of the United Kingdom government}}
{{EngvarB|date=February 2017}}
{{Use dmy dates|date=February 2017}}
{{Infobox company
| name = UK Asset Resolution Limited
| logo = UK Asset Resolution.png
| trading_name =
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| type = State-owned limited company
| industry = Finance
| fate =
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| foundation = {{Start date|df=yes|2010|10}}
| founder =
| defunct =
| location_city = 27–28 Eastcastle Street, London
| location_country = England, UK
| area_served =
| key_people = John Tattersall, Chairman
| products = Financial services
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| assets = £343m (2023)
| equity =
| owner = HM Government
| num_employees = 0 (2023)
| parent = UK Government Investments
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| homepage = {{URL|https://www.ukar.co.uk}}
| footnotes =
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}}
UK Asset Resolution (UKAR) is a British financial services holding company with headquarters in the West Yorkshire village of Crossflatts (near Bradford & Bingley's former headquarters in Bingley).{{cite web |url=http://wck2.companieshouse.gov.uk |title=UK Asset Resolution Company no. 07301961 |publisher=Companies House |access-date=14 November 2013}} It was established in October 2010 as a bad bank to hold the two run-off elements, Bradford & Bingley (including the Mortgage Express brand) and NRAM plc (previously known as Northern Rock Asset Management), of the two nationalised banks during the 2008 financial crisis.
Having completed the disposal of the final mortgage books in October 2021, UKAR now has no employees. It remains a government-owned entity, with PricewaterhouseCoopers handling any activities that arise as it is wound down.
History
File:Northern Rock Regent Centre Multi-company signage.jpg' buildings in Gosforth, Newcastle upon Tyne which housed some of UKAR's staff.]]
On 22 June 2012 Virgin Money, owners of the Northern Rock bank, acquired the remainder of the NRAM Gosforth site, and the following month UKAR sold £465 million of mortgages from the NRAM portfolio to Virgin.{{cite web |url=https://www.bbc.co.uk/news/business-18957812 |title=Northern Rock sell-off nets extra £538m for taxpayers |publisher=BBC News |date=23 July 2012 |access-date=23 July 2012}} UKAR left their Gosforth, Newcastle upon Tyne (Northern Rock / Regent Centre) offices in 2013, and moved those remaining staff to Doxford and Bingley.{{cite web |url=https://www.bbc.co.uk/news/uk-england-tyne-16052710 |title=UK Asset Resolution to close Newcastle office |publisher=BBC News |date=6 December 2011 |access-date=6 December 2011}}
In 2011 UKAR repaid £2.15 billion to taxpayers and in 2012 paid a further £4 billion.{{cite web |url=http://www.ukar.co.uk/media-centre/press-releases/2012/02-03-2012?page=2&nextprev=1 |title=UKAR Preliminary Results Announcement 2011 |publisher=UK Asset Resolution Ltd |date=2 March 2012 |access-date=7 May 2012}}{{cite web |url=https://www.bbc.co.uk/news/business-21922106 |title=Bradford & Bingley owner repays £4bn to taxpayers |publisher=BBC News |date=25 March 2013 |access-date=6 April 2013}}
In August 2013, the bank said it has now returned £6.6 billion to the government. It owed £48.7 billion when it was created in October 2010.{{cite web| title=UK 'bad bank' repays $2.9 billion to taxpayers in first half | author=Clare Hutchison| publisher=Reuters| url=https://www.reuters.com/article/us-ukar-results-idUSBRE97506Q20130806?feedType=RSS&feedName=topNews&dlvrit=992637| date=6 August 2013}}
In 2014 £2.7 billion of the mortgage book was agreed to be sold to Commercial First, a consortium led by JP Morgan.{{cite web |url=http://uk.reuters.com/article/uk-banks-uk-assetsales-idUKKCN0I30GB20141014 |title=UK 'zombie' bank sells 2.7 billion pounds of loans to JP Morgan group |publisher=Reuters |date=14 October 2014 |access-date=14 October 2014}}{{dead link|date=September 2024|bot=medic}}{{cbignore|bot=medic}}
In 2015 UKFI announced that it would seek expressions of interest for the divestment of mortgage servicing capabilities of the NRAM business as well as the Granite securitisation vehicle. UKFI appointed Moelis & Company as advisers for the divestments.{{cite web |url=https://www.bloomberg.com/news/articles/2015-03-18/osborne-says-u-k-plans-to-sell-13-2-billion-of-lloyds-shares |title=Osborne Says U.K. Plans Faster Sale of Lloyds Shares in 2015 |publisher=Bloomberg |date=18 March 2015 |access-date=4 April 2015}} On 13 November 2015, UKAR confirmed the sale of NRAM's Granite mortgage portfolio to Cerberus Capital Management for £13 billion.{{cite news|last1=Ping Chan|first1=Szu|last2=Wallace|first2=Tim|title=Government sells £13bn of former Northern Rock mortgages to US private equity firm|url=https://www.telegraph.co.uk/finance/newsbysector/banksandfinance/11992721/Government-sells-13bn-stake-in-Northern-Rock-to-US-private-equity-firm.html|access-date=13 November 2015|work=The Telegraph|date=13 November 2015}}
On 31 March 2017 it was announced by HM Treasury that the sale of buy-to-let mortgages from the Bradford & Bingley loan book to Prudential plc and funds managed by The Blackstone Group had been agreed for £11.8 billion.{{cite web |url=http://news.sky.com/story/bradford-bingley-asset-sale-raises-16312bn-for-taxpayers-10818885 |title=Bradford & Bingley asset sale 'raises £12bn for taxpayers' |publisher=Sky News |date=31 March 2017}}{{cite news|title=Bradford & Bingley mortgage sale raises £11.8bn|url=https://www.bbc.co.uk/news/business-39452635|access-date=31 March 2017|publisher=BBC News|date=31 March 2017}}
At 31 March 2020, UKAR and its subsidiaries had a total mortgage book of £4.7bn, down by £94.7bn since its establishment in 2010.https://www.ukar.co.uk/~/media/Files/U/Ukar-V3/documents/ukar-factsheet-2020.pdf {{Dead link|date=February 2022}}
On 26 February 2021, UKAR announced the sale of its final assets from Bradford & Bingley and Northern Rock at a price of £5 billion to a consortium of Citibank and Davidson Kempner Capital Management LP. This transaction consisted of two steps: UKAR sold the remaining loan portfolio to Citibank and Davidson acquired the government’s equity in Bradford & Bingley and NRAM. This concluded the government’s ownership of both institutions. UKAR will have no staff going forward but remains a government-owned entity, with PricewaterhouseCoopers handling any activities that arise.{{cite web |url=https://ypfs.som.yale.edu/library/ukar-update |title=UKAR Update: 26 Feb 2021 |publisher=UK Asset Resolution Ltd. in YPFS Resource Library |date=26 February 2021}}
UKAR's subsidiary UKAR Corporate Services was wound down and dissolved on 17 January 2023.{{cite web |url=https://find-and-update.company-information.service.gov.uk/company/08578384 |title=UKAR CORPORATE SERVICES LIMITED Company number 08578384 |publisher=Companies House |access-date=4 July 2024}}
See also
{{Portal|Companies}}
References
{{reflist|2}}
External links
- {{official website|https://www.ukar.co.uk}}
{{2008 economic crisis}}
{{UK banks |state1=collapsed}}
{{authority control}}
Category:Companies based in the City of Bradford
Category:Government-owned companies of the United Kingdom