Terra Firma to spend £3.2bn on real estate

DEALMAKER Guy Hands’ buyout group Terra Firma has agreed to buy Annington Homes from Nomura in a deal worth £3.2bn.

Hands, best known for the high profile loss of music group EMI to Citigroup after the private equity investor defaulted on its loans, was behind Nomura’s purchase of Annington in 1996 when he worked at the Japanese bank.

He has managed the investment on behalf of Nomura for the last 15 years, 10 of those while at Terra Firma.

“(Annington) is a pure play UK residential property company with a blue chip tenant on a lease of over 180 years and with the ability to benefit from the strength of the property market,” Hands, chairman and chief investment officer of Terra Firma, said in a statement.

Annington Homes became one of the largest private owners of UK residential property when it bought the Married Quarters Estate from the Ministry of Defence. (MoD).