Mortgage and financial services firm Firstfolio plans to take advantage of opportunities within the non-bank lending market after entering into acquisition talks with Calibre Financial Services (Calibre).
Under the terms of the proposed deal, Firstfolio will acquire a controlling interest in the Sydney-based non-bank lending firm which has a combined loan book of around $440 million.
Firstfolio will initially move to acquire a 66 per cent interest in the group with the view to purchase the remaining 34 per cent in the future, Firstfolio chief executive Mark Forsyth said.
Forsyth said the firm's decision to push into the non-bank lending market was based on the company's scale and capability to capitalise on a sector which had been largely vacant in Australia following the global financial crisis.
"In acquiring an interest in Calibre, Firstfolio gains a securitised lending platform that will give us additional options over funding, product and pricing of residential mortgages as a non-bank lender," he said.
"It will be a great supplement to our existing lines. Two to three years after the worst of the financial crisis, institutional appetite for quality RMBS (Residential Mortgage Backed Securities) issues is growing, and we will be in a position to satisfy that demand."
The success of the acquisition is subject to shareholder approval.
