UK’s Terra Firma plans to sell Annington Homes at $12 bln valuation

Private equity firm Terra Firma is in talks to sell residential property company Annington Homes, with any deal expected to value the British defence ministry’s landlord at over $12.18bn including debt, Sky News reported on Saturday.

Annington is one of the largest private owners of residential property in the United Kingdom. A majority of its 40,000 homes are leased to the Ministry Of Defence on a 200-year contract.

Terra Firma, which is headed by billionaire Guy Hands, bought Annington from Nomura Holdings in a deal worth 3.2 billion pounds in 2012. Hands was also behind Nomura’s purchase of Annington in 1996, when he worked at the Japanese bank.

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The Sky News report said that Hands was believed currently to own roughly a third of Annington’s equity, implying a personal payout of more than 1.5 billion pounds from any deal.

Both companies did not immediately respond to Reuters’ request for comments.

The report said Annington’s valuation included about 4 billion pounds of debt.

Source: Reuters

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