Barclays may exit commercial mortgage business

Barclays is Set to Exit Commercial Mortgages Business

Barclays is Set to Exit Commercial Mortgages Business

Barclays Capital Mortgage servicing (BCMS) – the commercial mortgages servicing unit of Barclays may be up for sale as Barclays decided to exit the business, media reports suggest.

Barclays is actively considering multiple bids for the unit and one bid has already rejected, it’s learnt.

Barclays had formed the BCMS unit in December 2004 for serving loans of commercial property investment transactions and currently offer supervision and asset management services.

The BCMS unit has a portfolio size of £6.8 billion which includes a loan portfolio of 80 advances secured against 1,251 properties, a report published in November by ratings agency Fitch showed.

The bank had decided to close its financial advisory unit Barclays Financial Planning last month. It said it will however; continue with its service targeting high net-worth individuals with Barclays Capital. Offering advisory services to retail customers through its branch networks were no longer a viable business proposition and the company may start an online execution-only service instead, the group informed.

Barclays Capital has refused to confirm the latest development.

“Mortgage admin is a specialist activity and, in the current climate, some businesses are concentrating on their core competencies”, said Julian Wells – Director of Marketing at HML, explaining the rationale behind Barclays move.

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