Terra Firma has replaced £4 billion ($5.2 billion)
of securitisations issued by portfolio company Annington Homes
with a combination of new equity, bonds and bank debt.
The company is the largest residential property owner in the
UK after acquiring nearly 60,000 properties from the Ministry
of Defence (MoD) for £1.7 billion in 1996 – it
leases most of the 40,000 it still owns back to the MoD. The
transaction removes restrictions associated with the use of the
underlying real estate as collateral, giving Annington Homes
more flexibility to grow its private rental sector (PRS)
"Annington Homes was quite constrained in terms of buying
new assets and growing the PRS part of the business," said
William Burnand, head of legal at Terra Firma. "We wanted to
replace the several layers of debt the company had with
something less expensive and more flexible."
Taking out securitisations The company had...