Morgan Stanley Investment Management, acting through investment funds managed by Morgan Stanley Real Estate Investing (MSREI), has led the acquisition of Metra Living, the private rented sector business of London & Quadrant Housing Trust (L&Q). The platform, which trades as Metra Living, has been acquired in partnership with Ridgeback Group for a total enterprise value of £1.045 billion, which is approximately US$1.38 billion.
The transaction encompasses a portfolio of around 3,200 private rented homes located across Greater London. In addition to the residential assets, the deal includes Metra Living’s fully integrated operating platform and its existing team, as well as approximately £300 million of external debt facilities. The acquisition gives the buyers control over both the physical assets and the operational infrastructure supporting the portfolio.
The homes in the portfolio are positioned within the UK’s private rented sector and are concentrated in Greater London, one of the country’s largest and most supply-constrained rental markets. By acquiring the assets together with the in-place management platform, MSREI and Ridgeback gain an immediate scaled footprint and an established operating capability in the local rental housing market.
Commenting on the transaction, Shamik Narotam, managing director at MSREI, said that the investment reflects the firm’s conviction in the long-term growth prospects of the UK private rented sector. He cited structural demand for professionally managed rental housing as a key underpinning for the sector, and noted that MSREI looks forward to building on Metra Living’s existing foundations while continuing to provide high-quality homes and services to residents.
The acquisition also marks a significant portfolio disposition for L&Q, which has sold its private rented sector business while retaining its broader activities as a housing trust. The inclusion of the operating platform and the associated external debt facilities indicates that the transaction was structured as a full business and asset transfer rather than a simple standalone property sale.
On the advisory side, MSREI and Ridgeback were advised on the transaction by Savills, Clifford Chance and Gowling. L&Q was advised by BNP Paribas, BDO, Pinsent Mason, Knights and Winckworth Sherwood. The advisory roster spanned investment, legal and financial advisors, reflecting the scale and complexity of the enterprise-level acquisition.
With this transaction, MSREI and Ridgeback secure a sizeable, fully operational private rented housing platform in Greater London, positioning the partnership to engage directly in the management and further development of the portfolio within the UK’s evolving private rented sector.
