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Annington Homes
Description
Annington Homes acquired approximately 58,000 residential properties from the UK Government. Annington leases the majority of its houses back to the Ministry of Defence for use by its military personnel, but those that are no longer required by the MoD are released to Annington. Annington's primary business is therefore the refurbishment and sale of second hand homes.
Strategy
Terra Firma identified that the Government-backed rental cash flow from the Annington estate, along with proceeds from the sale of properties released by the MoD, could be securitised to reduce the initial investment needed to purchase the portfolio.
The acquisition was financed by an immediate securitisation of Government-guaranteed cash flows plus senior bank debt. Over the next five to seven years, it is still anticipated that significant releases will be made by the MoD as its housing requirements decline, reflecting the consolidation of UK military bases.
- “The single largest transfer of residential property in the UK”
- Sector
- Housing
- Transaction size
- €2,600m
- Status
- Partially Realised
- Investment year
- 1996
- Exit Year
- 1997, 2002