Challenger bank Paragon confirms it's in talks to acquire housebuilders' lender Titlestone

 
Lucy White
Titlestone helped to finance the Capital Towers in Stratford
Titlestone helped to finance the Capital Towers in Stratford (Source: Titlestone)

Challenger bank Paragon has revealed it is in the "early stages of considering a possible acquisition of Titlestone", a firm which lends to residential developers.

Though FTSE 250-listed Paragon – which focuses on mortgages, savings and providing business finance – did not expand on how much it was likely to offer for Titlestone, the housebuilders' lender has a balance sheet of around £600m.

Paragon added that there was still no certainty that a firm offer would even be made, but said that the "purchase of loan books and bolt-on businesses represents a core part of Paragon's growth and diversification strategy".

Read more: Challenger Paragon boosts mortgage lending despite buy-to-let crackdown

Titlestone is currently owned by Oaktree Capital Management, a US private equity and credit giant which has around $121bn in assets under management.

Titlestone itself has committed in excess of £2bn across more than 300 development facilities. It focuses on London and the south of England, and has helped finance developments such as the Capital Towers in Stratford and the refurbishment of The Garment Building in Chiswick.

Read more: Miller Homes posts nearly £30m increase in profits

Related articles