UK private equity Terra Firma to sell Annington Homes for $12 billion

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UK private equity Terra Firma to sell Annington Homes for $12 billion

Terra Firma, a UK-based private equity firm founded back in the 2002s and headquartered in London, had been in an advanced stage talk to divest its residential property unit Annington Homes in a deal what could value the Terra Firma arm over an eye-popping £9 billion or $12.18 billion including debts, a Sky News report had unveiled late on Saturday citing sources familiar with the subject-matter.

In fact, Terra Firma-owned Annington Homes has been one of the largest residential real estate company in the UK with a majority of its 40,000 properties having been leased by the UK Ministry of Defence under a 200-year contract.

Back in the 2012s, billionaire businessman Guy Hands-led Terra Firma had purchased Annington from Nomura Holdings in a £3.12 billion buyout deal, while it is believed that Hands also had been behind the Japanese lender’s purchase of Annington in 1996.

On top of that, the Sky News report also added that Hands currently held a third of Annington equity, while any kind of sell-off deal would generate more than a £1.5 billion in fresh liquidities for Hands.

Annington to be sold at $12 billion deal

Nonetheless, while being asked over the issue, neither Annington nor Hands-led Terra Firm had commented on the subject-matter, though, the companies also had declined to mention the future owner of British Defence Ministry landlord.

Besides, the Sky News report had quoted one of the unnamed sources who wished to remain anonymous given the scale of sensitivity of the issue as saying that Terra Firma’s residential property unit’s valuation had involved an approximated £4 billion in debts.