Buy to Let

Charter Court Financial Services is set to announce plans for £500m float in London

Buy-to-let mortgage lender Charter Court Financial Services is expected to reveal a £500m initial public offering (IPO) on the London Stock Market, according to reports.

The owner of Exact and Precise mortgage brands could announce plans for a float as soon as this week with a market value of about £500m, Mark Kleinman at Sky News reported.

It was unclear how much Charter Court would seek to raise through the IPO.

The firm is owned by the US hedge fund Elliott Associates, and it is working with Barclays and Royal Bank of Canada to prepare the float.

Sky also reported Sir Malcolm Williamson, a City veteran with previous roles at Standard Chartered and Aviva, has joined the firm’s board and is expected to be named as its chairman.

City investors were reportedly enthusiastic about Charter Court’s planned float in initial meetings held by chief executive Ian Lonergan.

Last year, Charter Court cancelled a £400m auction over a Brexit row. Bidders asked for a Brexit clause that would allow them to cut the price they paid for the business, but Elliott refused.

The firm made an underlying profit before tax of just over £50m in 2016, up 76 per cent from the previous year, despite the Bank of England’s crackdown on buy to lets.

Charter Court declined to comment.

Read more: Charter Court launches new savings bank

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