Partial divestment by Keystart to Australia’s fifth largest retail bank
Western Australia’s low deposit and shared equity residential finance provider, Keystart, has entered into an agreement with two banks for the partial divestment of their loan book, agreed at $1.3 billion.
The agreement with Bendigo and Adelaide Bank, Australia’s fifth largest retail bank, will not affect service levels or existing terms and conditions of Keystart, who have helped more than 85,000 West Australians into home ownership.
The Liberal National Government today announced that Keystart had entered into an agreement with Bendigo and Adelaide Bank for the partial divestment of Keystart’s loan book, with the equitable assignment to the private sector to be completed at $1.35 billion.
Treasurer Mike Nahan said the selection of a partner was an important consideration for Keystart and the State Government, after running an open and competitive process which demonstrated Bendigo and Adelaide Bank had a strong track record in partnering and offered the best value to the State.
Dr Nahan said Bendigo and Adelaide Bank was Australia’s fifth largest retail bank and had a long and established history in the Australian residential mortgage market.
“When finalised, this will mark the second transaction in the State Government’s asset sales program and will achieve a reduction in gross debt,” he said.
“This also represents an important step in ensuring a sustainable future for the home loan program by reducing its reliance on Government borrowings.”
Housing Minister Brendon Grylls said it would be business as usual for Keystart customers.
“There will be no change to the service levels or terms and conditions for existing Keystart customers and the transaction will not change Keystart’s existing interest rate setting policy, lending eligibility criteria or rigorous loan assessment process,” Mr Grylls said.
“The Government remains committed to supporting Keystart, which will continue to play a critical role in the Government’s Affordable Housing Strategy and ensure West Australians have access to low deposit loans that allow them to enter the housing market.”
Source: Government of Western Australia – Media Release: “Partial divestment by Keystart agreed at $1.3b”