UK: Residential property developer L&Q has put its BTR portfolio of 3,147 homes across 52 schemes for sale, with Morgan Stanley Real Estate Investing (MSREI) emerging as the preferred party to buy it.
The fund management arm of the American bank is reported to have agreed on a price in the region of £1.1 billion and to have fought off bids from Blackstone, Kennedy Wilson, Pelham Partners and LRC Group.
The other parties all submitted offers above £1 billion around a month ago.
Codenamed Project Greenwich, the sale consists of 3,147 homes across 52 schemes in and around London and is almost fully let.
These include Beam Park in Rainham, Rookery Grove in Hendon, Barking Riverside, Hayes Village and Queen’s Quarter in Croydon.
The sale is managed by L&Q subsidiary L&Q PRS, which trades as Metra Living.
The housing association appointed BNP Paribas to find a buyer for the portfolio in November last year and advise on the deal.
MSREI is understood to be working with its UK-based partner Ridgeback, which has a portfolio of more than 4,000 operational units, predominantly through its partnership with Canadian investment firm Alberta Investment Management Corp.
Morgan Stanley launched its latest global real estate opportunity fund, North Haven Real Estate Fund XI Global, in January.
Its predecessor fund raised $3.1 billion (£2.29 billion) of equity in 2021, and in February last year, MSREI agreed to an extension of its investment period by 12 months to give it more time to invest amid uncertain market conditions.
MSREI said: “We will seek opportunities to acquire, renovate or develop existing multifamily, single-family rental and student housing product in undersupplied housing markets.”
Highlights:
- Morgan Stanley Real Estate Investing has emerged as the preferred buyer for L&Q’s £1.1 billion BTR portfolio.
- L&Q has put 3,147 homes across 52 schemes in and around London up for sale under Project Greenwich.
- Competing bids from Blackstone, Kennedy Wilson, Pelham Partners, and LRC Group have been submitted above £1 billion.
- The portfolio has been managed by L&Q subsidiary L&Q PRS, trading as Metra Living.
- L&Q has appointed BNP Paribas to manage the sale and advise on the transaction.
