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14 December 2012

Terra Firma Completes Acquisition of Annington Homes

Largest European LBO since 2008

7th largest LBO globally since 2008

Terra Firma, the private equity firm, announces that it has completed the acquisition of Annington Homes (“Annington”) from Nomura International plc (”Nomura”).  Annington, which owns the Ministry of Defence’s Married Quarters Estate, is comprised of approximately 40,000 properties and has been managed by Terra Firma on Nomura’s behalf for the last ten years. 

The Enterprise Value is £3.2 billion, comprised of £450 million of equity from Terra Firma, £550 million of new debt in the form of a PIK issue and assumed existing debt of £2.2 billion. The PIK Notes were the second largest ever sterling high yield issue and the largest ever high yield issue by a debut issuer. 

Guy Hands, Chairman and Chief Investment Officer of Terra Firma, said: 

“Annington is an outstanding success story.  It is a pure play UK residential property company with a blue chip tenant on a lease of over 180 years and with the ability to benefit from the strength of the property market.  We look forward to working with Annington’s management as it moves on to the next stage in its development.” 

For further information:

Finsbury
Andrew Dowler
020 7251 3801

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