UK housing association and residential developer London & Quadrant Housing Trust (L&Q) has sold its private rented sector (PRS) business to Morgan Stanley Investment Management and Ridgeback Group for £1.05bn (€1.21bn).
Morgan Stanley, investing via funds managed by Morgan Stanley Real Estate Investing (MSREI) alongside UK property investor Ridgeback to acquire Metra Living, has secured a portfolio of approximately 3,200 homes across Greater London as well as its fully integrated operating platform, team and £300m in external debt facilities.
Shamik Narotam, managing director at MSREI, said: “We are pleased to acquire Metra Living, a high-quality, scaled platform in one of Europe’s most supply-constrained residential markets.
“This investment reflects our conviction in the long-term growth of the UK private rented sector, supported by structural demand for professionally managed rental housing. We look forward to building on the platform’s strong foundation and continuing to deliver high-quality homes and services to residents.”
George Bossom, partner at Ridgeback, said: “We are delighted to complete this acquisition with MSREI. 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.”
Fiona Fletcher-Smith, group CEO 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,” Fletcher-Smith added. “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.”
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