Terra Firma Capital Partners Ltd., the private-equity firm founded by Guy Hands, is in talks to buy Annington Homes from Nomura Holdings Inc. (8604) in a transaction valuing the U.K. military housing portfolio at about 3.5 billion pounds ($5.6 billion), a person familiar with the situation said.
Terra Firma’s investors will help purchase the portfolio through 500 million pounds of new equity, combined with about 500 million pounds of debt arranged by Barclays Plc (BARC), the person said, declining to be identified as the details are private. The business also has around 2.5 billion pounds of debt, the person said.
Annington was set up by Nomura’s principal finance group in 1996 to buy the U.K. Ministry of Defence housing portfolio. It had about 57,434 homes at the time of purchase, with the properties located in England and Wales, according to Annington’s website. Hands led the acquisition of Annington when he worked at Nomura and built up the bank’s buyout unit in the 1990s.
The U.K.’s Telegraph newspaper reported the planned transaction earlier.
Representatives for Terra Firma and Nomura in London both declined to comment.
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