Terra Firma is reported to be nearing a £3.5bn deal with Nomura to wrest control of Annington Homes, the UK Army housing manager that chairman Guy Hands first bought 16 years ago while working for the Japanese investment banking giant.
The Telegraph reported the news on Friday, without saying where it got the information.
Annington, which manages almost 60,000 army homes, is understood to have made Nomura close to £2bn in profit since the bank bought the “lease and leaseback” assets in 1996 from the Ministry of Defence for just £1.66bn.
Terra Firma has been managing Annington for Nomura, but has only been looking to take full control of the business in the last six months.
Terra Firma’s limited partners are said to have agreed to pay £500m for the company combined with £500m of fresh debt to be raised through a high yield bond organised by Barclays, the report said.
Nomura will receive the £1bn, while £2.5bn of Annington’s existing debt will be transferred across, the report added.
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