Real Estate

Terra Firma has a deep understanding of the real estate market

Operational real estate businesses exhibit the three key characteristics we look for in investments. They are asset-backed through the properties the businesses own, with the rental income generated from the assets providing a reliable stream of revenue. They are in an essential industry: residential real estate is experiencing strong demand in markets around the world. Often the assets have been under-invested and under-managed, leaving scope for transformation.

Terra Firma has a deep understanding of the real estate market and its core value drivers gained from owning and financing real estate assets over many years. It has proven experience in directly owning real estate, maximising the underlying value of real estate assets by enhancing the operating businesses, granular work-outs of real estate loan portfolios and asset-backed debt structuring.

Current Investments

Annington Homes is one of the largest private owners of residential property in the UK. Annington was formed in 1996 to acquire the Ministry of Defence’s (’MoD’) Married Quarters’ Estate. Annington leases back the majority of its properties to the MoD as accommodation for its married Service personnel, with the MoD being responsible for the maintenance and upkeep of those properties. Properties which are released by the MoD are refurbished and available for sale or private rental at market prices.

Deustche Annington is the number one residential landlord in Germany. The company owns, maintains and rents the properties and sells individual units to tenants and third parties. Its investment model and philosophy centre on providing socially responsible, tenant-focused property management and widening the opportunities for people to buy their own homes.

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An Annington Homes site in the UK

"Residential housing is an essential industry that will provide investment opportunities despite the economic cycle or broader macro-economic issues."

Guy Hands, SuperReturn Berlin, February 2013

Over240,000

Residential units managed by Terra Firma