South African lender and asset manager Investec is considering the sale of
Investec, which has already said it was looking to sell some of its operations in
Investec bought Kensington, which had specialised in lending to home buyers with a poor credit history, in a £283 million (R5.1 billion at yesterday's rate) deal in 2007 - just before the global economic crisis, which sent a judder through the housing market in
Since then Kensington has changed its focus to safer "prime" lending, but it has been dogged by a sharp fall in property prices in
However, signs of an economic turnaround may have created an opportunity to shed Kensington as some investors look to recovery plays.
"The market likes the restructuring in
"They just bought it at the wrong time of the cycle… a significant part of the mortgage book is in
Brodziak declined to estimate how much Kensington might be worth.
The group last month named veteran banker
In a trading update yesterday, Investec reported a scant 1 percent rise in total operating income in the first nine months of the year, restrained by a downturn in the rand, though it gave no figure.
The group, which is also listed in
Despite yesterday's gains, shares are still in negative territory so far this year with a 1.1 percent decline, though they have outperformed a 3.4 percent drop in the Top40 index over the same period.
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