First Citizen to target real-estate market with purchase of W&W

Irish motor finance specialist First Citizen Finance is set to expand into real estate and property-based loan servicing and advisory work following its acquisition of consulting group Weston & Wellington Ltd, which is led by former GE executive Paula ter Brake.

Led by Chris Hanlon, First Citizen was formed in 2012 when the management team of Permanent TSB's car finance division acquired the €500 million book of loans. About 70 of the then 100 staff moved with the business.

First Citizen began writing new business earlier this year and Mr Hanlon said its target is a 15 per cent share of the car finance market in 2014, which would involve lending €75-€100 million. “We on target to that this year,” he said. “The car market is on an upward trajectory.”

First Citizen secured a €150 million revolving credit facility from international lenders, including Deutsche Bank, that it plans to lend for car purchases.

W&W was established in 2008 and specialises in advising on the resolution of distressed real estate. It was founded by Ms ter Brake, and its mandates have included advising Irish Bank Resolution Corporation and the National Asset Management Agency. It has just three staff and uses consultants as required.

Mr Hanlon said a consideration was paid for the acquisition but it was “not large”. Ms ter Brake will be chief executive of First Citizen Asset Management Ltd and will have a “meaningful” shareholding in First Citizen.

He said the deal would enable First Citizen to undertake advisory, portfolio management and master servicing for residential and commercial mortgage-backed securities, including real estate asset management: “A number of portfolios are set to come on the market this year and we’ll be looking to compete for them.”

Ms ter Brake said the deal would bring together First Citizen’s loan management infrastructure with W&W’s strategic advisory expertise. “We intend to deliver a technology-based asset-management solution that is favoured by many of our clients in other jurisdictions,” she said.

The enlarged First Citizen will employ 70 full- and part-time staff.