Morgan Stanley Real Estate Investing and Ridgeback Group Acquire L&Q Group's Metra Living Platform for £1.045 Billion
LONDON — Morgan Stanley Real Estate Investing (MSREI), through investment funds managed by Morgan Stanley Real Estate Investing, and Ridgeback Group have completed the acquisition of the private rented sector (PRS) business of London & Quadrant Housing Trust, known as L&Q Group Group, which trades under the Metra Living brand. The total enterprise value of the transaction is £1.045 billion, the firms announced Tuesday.
The deal transfers approximately 3,200 homes across Greater London, along with Metra Living's fully integrated operating platform and team. The transaction also includes £300 million of external debt facilities.
Transaction Details
Metra Living was established in 2015 and has grown into an institutionally managed PRS platform focused on rental housing across supply-constrained London submarkets. L&Q Group will continue to provide freeholder services to PRS homes leased within its buildings following the close of the transaction.
Shamik Narotam, Managing Director at Morgan Stanley Real Estate Investing, said the acquisition reflects the firm's view of the UK private rented sector. "We are pleased to acquire Metra Living, a high-quality, scaled platform in one of Europe's most supply-constrained residential markets," Narotam said. "This investment reflects our conviction in the long-term growth of the UK private rented sector, supported by structural demand for professionally managed rental housing. We look forward to building on the platform's strong foundation and continuing to deliver high-quality homes and services to residents."
George Bossom, Partner at Ridgeback Group, echoed that view. "We are delighted to complete this acquisition with MSREI," Bossom said. "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."
L&Q Group's Strategic Rationale
For L&Q Group, one of the UK's largest housing associations, the sale represents a deliberate step in a broader strategic realignment. The not-for-profit organisation houses around 250,000 people in more than 105,000 homes, primarily across Greater London and Greater Manchester.
Fiona Fletcher-Smith, Group Chief Executive at L&Q, described the transaction as a milestone. "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," Fletcher-Smith said. "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."
Advisers and Firm Backgrounds
MSREI and Ridgeback Group were advised by Savills, Clifford Chance, and Gowling on the transaction. L&Q Group was advised by BNP Paribas Real Estate, BDO, Pinsent Mason, Knights, and Winckworth Sherwood.
Morgan Stanley Real Estate Investing is the global private real estate investment management business of Morgan Stanley and currently manages $58 billion of gross real estate assets worldwide. The firm operates 17 offices across the U.S., Europe, and Asia and pursues global value-add and opportunistic strategies alongside regional core and core-plus strategies.
Ridgeback Group is a UK-focused real estate investor, developer, and operator with more than £2.6 billion of assets under management.
Morgan Stanley Investment Management reported more than $1.9 trillion in assets under management or supervision as of March 31, 2026, and employs more than 1,300 investment professionals globally.
Sources
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