London & Quadrant Housing Trust (L&Q) has completed the sale of its private rented sector (PRS) business for £1.045bn to an investment fund managed by Morgan Stanley Real Estate Investing (MSREI).
The buyer, acting in partnership with Ridgeback Group, has acquired L&Q PRS Co Ltd – which trades as Metra Living – including its portfolio of around 3,200 homes in Greater London, its operational platform and team, and £300m of external debt facilities.
L&Q said the disposal forms part of a strategy to simplify its operations and refocus on its core role as a social housing provider. The trust first announced it was seeking buyers for the business in November 2024, with MSREI and Ridgeback named as preferred partners in June 2025 following a competitive tender.
L&Q will retain a continuing role, providing freeholder services to private rented homes leased within its buildings.
Fiona Fletcher-Smith, group chief executive at L&Q, said: “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.
“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.”
Shamik Narotam, managing director at MSREI, said: “We are pleased to complete this transaction with L&Q and to partner with Ridgeback on the acquisition of Metra Living. Metra Living is a high-quality, scaled platform in a supply-constrained London market, and we look forward to building on its strong foundation and supporting its continued growth.”
George Bossom, partner at Ridgeback, added: “We are delighted to complete this acquisition with MSREI. 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.”
BNP Paribas and BNP Paribas Real Estate advised L&Q on the transaction. Simon Williams, head of alternatives capital markets at the latter, described it as “a hugely significant transaction in the current market that demonstrates the depth of investor appetite for high-quality, income-producing residential assets”.
MSREI manages $58bn of gross real estate assets worldwide. Ridgeback is a UK-focused real estate investor, developer and operator with more than £2.6bn of assets under management.
Image credit: Natee Meepian – Shutterstock
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