The UK living sector was in the picture this week, with housing association L&Q announcing that it has put its £1.2 bn (€1.45 bn) private rented sector (PRS) business up for sale, while Starlight Investments scored a major deal and Brookfield issued a chunky loan to Blackstone and Regis.
L&Q, which has 105,000 homes in the UK, has appointed BNP Paribas Real Estate to seek buyers for Metra Living, its wholly owned private rental arm, as it continues to focus on investment into existing and new social homes.
Metra Living manages a portfolio of 3,147 homes across 53 schemes in Greater London, the majority of which were built within the last 10 years. The proposed sale will include the transfer of Metra Living's existing operational platform and team.
Fiona Fletcher-Smith, group chief executive of L&Q said: ‘We're proud to have built up a large and highly successful PRS business since entering the market in 2015. However, in recent years the social housing sector has faced economic volatility, policy shifts and funding uncertainties. In response we have a clear strategy which is focused on simplifying our business, prioritising our core purpose as a social housing provider, and ensuring every L&Q resident has a safe and decent home with access to services they can rely on. The sale of Metra Living will support this drive, enabling us to invest even more in our existing homes and services, and support the delivery of our longer-term objectives to build more of the affordable homes this country so desperately needs.’
She added: ‘This sale represents an excellent investment opportunity for an investor seeking a large, stabilised PRS portfolio and operational platform in London.’
Other assets put on the market this week include URW’s 80% stake in Tour Trinity for over €450 mln and the €200 mln Skypark Valdebebas in Madrid, Hines’ first build-to-rent project in Spain.
The rental living sector also tops the recently completed deal and financing sections this week with Starlight Investments spending £500 mln to acquire 1,541 homes across three UK development projects and Brookfield providing a £320 mln financing loan to Blackstone and Regis for a single-family rental portfolio of 1,473 units.
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