L&Q completes sale of private rental business for just over £1bn

The Metra Living portfolio consists of 3,147 homes across 53 schemes in Greater London, the majority of which were built in the past 10 years. The sale includes the transfer of Metra Living’s operational platform and team and its £300m of external debt facilities.

The London landlord explained it has engaged in “a robust and competitive tender process” since November 2024, with the MSREI-Ridgeback partnership chosen as L&Q’s preferred partner in June 2025.

The landlord said: “This reflected MSREI’s patient, long-term approach to investing in real estate, combined with Ridgeback’s extensive experience owning and operating rental homes in the UK.”

Fiona Fletcher-Smith, group chief executive at L&Q, said: “The sale of Metra Living is a key milestone in delivering our long-term strategy, and we’re extremely pleased to have reached this agreement with MSREI.

“We’re proud to have grown a successful PRS business since 2015, but we have a clear strategy to simplify our business and focus on our core purpose as a social housing provider.

“This sale further strengthens our financial resilience, supporting our long-term drive to invest in new and existing homes across Greater London and Greater Manchester.

“Recent government measures have brought much-needed investment and financial certainty to the housing sector. This sale puts us in the strongest position to maximise these opportunities, and deliver our strategy from a position of financial strength.”

It is hoped the sale will ensure residents benefit from responsive, high-quality services that offer best value for money, delivered by a specialist PRS landlord. This also marks the start of a long-term partnership, with L&Q continuing to provide freeholder services to PRS homes leased within its buildings.

Shamik Narotam, managing director at MSREI, said: “We are pleased to complete this transaction with L&Q and to partner with Ridgeback on the acquisition of Metra Living.

“Metra Living is a high-quality, scaled platform in a supply-constrained London market, and we look forward to building on its strong foundation and supporting its continued growth.”

George Bossom, partner at Ridgeback, said: “We are delighted to complete this acquisition with MSREI.

“This investment further reinforces our conviction in the UK PRS sector, where strong structural demand and a continued shortage of high-quality rental housing support attractive long-term fundamentals.”

MSREI is the global private real estate investment management business of Morgan Stanley and has been one of the most active property investors in the world for over three decades. MSREI currently manages $58bn (£43bn) of gross real estate assets worldwide on behalf of its clients.

Ridgeback is a UK-focused, fully integrated real estate investor, developer and operator with over £2.6bn of assets under management.

BNP Paribas, BNP Paribas Real Estate and Winckworth Sherwood all advised L&Q on the sale.

Simon Williams, head of alternative capital markets at BNP Paribas Real Estate, said: “This is a hugely significant transaction in the current market that demonstrates the depth of investor appetite for high-quality, income-producing residential assets.

“Portfolios of this scale and quality rarely come to market and the highly competitive sales process reflected the strength of conviction among global capital seeking a significant exposure to London’s private rental housing market.”

Richard Choi, head of UK real estate advisory at BNP Paribas, said: “Delivering a result of this scale in today’s markets underscores our commitment to our clients and reinforces the strong long-term outlook of the UK private rented sector.”

David Emery, partner in the corporate, procurement and commercial team at Winckworth Sherwood, said: “This is a pioneering transaction within the private rented sector, ensuring that this important portfolio remains under the control of a specialist PRS landlord while allowing L&Q to focus on its core purpose as a social housing provider.

“The sale of Metra Living has called for the support of diverse and specialist teams across our team, bringing expertise from the social housing and private rented sectors, and from construction due diligence through to corporate governance.”

The landlord was also helped out by Pinsent Masons and Knights.

Jon Blackburn, corporate partner at Pinsent Masons, said: “This transaction represents a significant milestone in the evolution of L&Q’s portfolio, unlocking substantial value from its private rented sector assets during a period of significant investor demand for stable, income producing residential housing.

“The scale and complexity of the deal required close collaboration across multiple disciplines within Pinsent Masons, working alongside the team at Knights and L&Q’s other advisers to support L&Q in achieving a strategic outcome that positions the organisation strongly for future investment and sustainable growth.”

Karen Procter, corporate partner at Knights, said: “We are thrilled to have supported the L&Q team through this complex transaction which allows the business to focus fully on their strategy to provide the very best social homes and services that everyone can be proud of.

“L&Q is nationally renowned for helping those in most housing need find a place to call home, and we’re proud to have played a small part in supporting the delivery of its longer-term objectives to build more affordable homes.

“It has been a pleasure working collaboratively with Jon and the team at Pinsent Masons in advising L&Q, and we’re delighted to have been able to play a part in getting this important deal over the finish line."