The listed mortgage and financial services group has entered into a binding agreement to acquire the $620 million prime mortgage management portfolio from Capital First, a GMAC -RFC Company.
The total consideration payable for the deal will be about $1.8 million. The consideration will be paid in cash and by issue of shares in Firstfolio.
The management of the portfolio will be undertaken within the existing Firstfolio cost structure. The net management fee earnings are expected to contribute materially to Firstfolio earnings for 2007 /2008.
The acquisition will take Firstfolio's loan portfolio to $7.8 billion.
The proposed portfolio acquisition by Firstfolio follows on from deals with Blue Coast Finance and Lawfund Australia.
In March this year Firstfolio signed a joint venture with Blue Coast Finance.
The deal with Blue Coast Finance will see Firstfolio's lending and financial services products distributed in key regional markets through Blue Coast's offices.
Firstfolio owns 81.67 per cent of Lawfund.
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