L&Q has completed the £1.045bn sale of its private rented sector business, Metra Living, to a partnership between an investment fund managed by Morgan Stanley Real Estate Investing (MSREI) and Ridgeback Group.
The deal marks a significant step in L&Q’s strategy to focus on its core role as a social housing provider, while strengthening its financial position and simplifying its operations. The transaction includes around 3,200 rental homes across Greater London, the transfer of Metra Living’s operational team and platform, and approximately £300m of external debt facilities.
L&Q first announced plans to sell its PRS business in November 2024, triggering a competitive bidding process. The housing association selected the MSREI-Ridgeback partnership as its preferred buyer last year, citing the investors’ long-term approach to the sector and experience in managing rental housing.
Despite the sale, L&Q will maintain an ongoing relationship with the business, continuing to provide freeholder services for PRS homes located within its developments.
Fiona Fletcher-Smith, group chief executive at L&Q said, “The sale of Metra Living is a key milestone in delivering our long term strategy, and we’re extremely pleased to have reached this agreement with MSREI.
“We’re proud to have grown a successful PRS business since 2015, but we have a clear strategy to simplify our business and focus on our core purpose as a social housing provider. This sale further strengthens our financial resilience, supporting our long-term drive to invest in new and existing homes across Greater London and Greater Manchester.
“Recent government measures have brought much-needed investment and financial certainty to the housing sector. This sale puts us in the strongest position to maximise these opportunities, and deliver our strategy from a position of financial strength.”
“We are pleased to complete this transaction with L&Q and to partner with Ridgeback on the acquisition of Metra Living,” said Shamik Narotam, Managing Director at MSREI. “Metra Living is a high-quality, scaled platform in a supply-constrained London market, and we look forward to building on its strong foundation and supporting its continued growth.”
MSREI is the global private real estate investment management business of Morgan Stanley and one of the most active property investors in the world for over three decades. MSREI currently manages $58bn of gross real estate assets worldwide on behalf of its clients.
Ridgeback is a UK focused fully integrated real estate investor, developer and operator with over £2.6bn of assets under management.
George Bossom, partner at Ridgeback, commented: “This investment further reinforces our conviction in the UK PRS sector, where strong structural demand and a continued shortage of high-quality rental housing support attractive long-term fundamentals.”
BNP Paribas were appointed to advise L&Q on the sale.
Read the orginal article: https://propertyindustryeye.com/property-giant-seals-1bn-sale-of-prs-business-in-landmark-deal/
