Housing giant L&Q has sealed the £1.045 billion sale of its Metra Living private rented sector (PRS) division to a joint venture between investment fund managers Morgan Stanley Real Estate Investing and Ridgeback Group, in a deal that marks a significant strategic shift for the social housing provider.
The transaction encompasses around 3,200 rental properties across Greater London, along with the transfer of Metra Living's entire operational team and its platform – as well as £300 million of existing external debt facilities. This comprehensive handover ensures continuity for the properties and their tenants under new ownership.
L&Q first flagged plans to divest its PRS business in November 2024, sparking a competitive bidding process that attracted considerable interest. The partnership between Morgan Stanley's global private real estate investment management arm and UK-focused real estate investor Ridgeback Group was ultimately selected as the preferred buyer last year – with L&Q citing their long-term commitment to the sector and extensive experience in managing rental housing.
Fiona Fletcher-Smith, L&Q's Group Chief Executive, highlighted the sale's significance in delivering the organisation's long-term strategy. While proud of building a successful PRS business since 2015, she noted that the clear objective now is to simplify operations and concentrate on its core purpose as a social housing provider – a move expected to bolster L&Q's financial resilience.
Despite selling Metra Living, L&Q will maintain an ongoing connection with the divested business. The association will continue to provide freeholder services for PRS homes situated within wider developments – ensuring continued involvement and oversight in the communities it serves.
For MSREI and Ridgeback, this acquisition represents a significant expansion into the UK's private rental market. Shamik Narotam described Metra Living as a 'high-quality, scaled platform' in a supply-constrained London market, expressing enthusiasm for building upon its strong foundation and supporting future growth. George Bossom emphasised their conviction in the UK PRS sector – citing structural demand and persistent shortages of high-quality rental housing as factors supporting attractive long-term fundamentals.