Pinsent Masons and Knights advise London & Quadrant Housing Trust on the sale of its PRS business

The sale of Metra Living, sees c. 3,200 individual homes across 53 schemes within Greater London, together with its operational platform and team, transfer to a fund managed by Morgan Stanley Real Estate Investing (MSREI) working alongside its UK partner, Ridgeback Group.

Founded in 1963, L&Q is one of the UK’s leading residential developer and housing associations housing around 250,000 people in more than 105,000 homes, primarily across London, the South East and the North West of England.

As a registered charitable housing association, the sale of Metra Living to MSREI will allow L&Q to focus on its core business of investing into its existing and new social homes and supporting the delivery of more affordable, high-quality homes. It also establishes a long-term partnership, with L&Q continuing to provide freeholder services to PRS homes leased within its buildings.

A team of specialist advisers at regional legal and professional services business, Knights, and London-headquartered international law firm, Pinsent Masons, has supported L&Q throughout the sale, having been jointly appointed as Corporate legal advisers.

The Pinsent Masons team was led by Corporate Partner, Jon Blackburn, alongside Real Estate Partner, Natalie Harris and Corporate Partner, Robert Moir, with specialists in the firm’s Regulatory Compliance, Commercial, Tax, Forensic Accounting, Energy and Construction groups providing expert support throughout.

The Knights team was led by Corporate Partner, Karen Procter, together with Corporate colleagues Jay Birch, James Sparks and Natalie McCann. The team was supported by specialist experts in Data Protection, Housing, Planning, Employment and Commercial.

BNP Paribas were appointed by L&Q to advise on the sale. Property legal advice and support to L&Q was provided by Winckworth Sherwood LLP.

Martin Watts, Director of Treasury at L&Q, said: “We’re proud to have built a highly successful PRS business since entering the market in 2015 and the sale of Metra Living is a key milestone in delivering our long term strategy. I have no doubt that under the new ownership of MSREI, it will continue to go from strength to strength as a quality provider of rental homes in the UK.

"Knights and Pinsent Masons were outstanding in supporting L&Q through this transaction, their collaborative approach, commercial insight and unwavering strategic focus were instrumental in getting this deal over the line. "It’s been a genuine partnership to achieve this deal, they worked seamlessly alongside our teams, navigating large complexity with clarity and pace over a long period of time.”

Jon Blackburn, Corporate Partner at Pinsent Masons, commented: “This transaction represents a significant milestone in the evolution of L&Q’s portfolio, unlocking substantial value from its private rented sector assets during a period of significant investor demand for stable, income‑producing residential housing. The sale reinforces L&Q’s long‑term commitment to simplifying their business and delivering safe, affordable homes.

“The scale and complexity of the deal required close collaboration across multiple disciplines within Pinsent Masons, working alongside the team at Knights and L&Q’s other advisers to support L&Q in achieving a strategic outcome that positions the organisation strongly for future investment and sustainable growth.”

Karen Procter, Corporate Partner at Knights, said: “We are thrilled to have supported the L&Q team through this complex transaction which allows the business to focus fully on their strategy to provide the very best social homes and services that everyone can be proud of. “L&Q is nationally renowned for helping those in most housing need find a place to call home, and we’re proud to have played a small part in supporting the delivery of its longer-term objectives to build more affordable homes.

“It has been a pleasure working collaboratively with Jon and the team at Pinsent Masons in advising L&Q, and we’re delighted to have been able to play a part in getting this important deal