TERRA FIRMA TO BUY ANNINGTON IN DEAL VALUED AT 3.2BLN POUNDS

(The following is a reformatted version of a press release
issued by Terra Firma and received via electronic mail. The
release was confirmed by the sender.) 
19th November 2012 
ANNINGTON GROUP (“ANNINGTON” OR “ANNINGTON HOMES”) 
Terra Firma, the private equity firm, announces that it has
agreed terms for the acquisition of Annington Homes from Nomura
International plc. Annington, which owns the Ministry of
Defence’s (“MoD”) Married Quarters Estate, is comprised of
approximately 40,000 properties. The acquisition is due to
complete by the end of 2012. 
In 1996, Nomura became one of the largest owners of residential
property in the UK through the creation of Annington on the
acquisition of the MoD’s Married Quarters Estate which was then
made up of over 57,000 properties. The estate was sold and
leased back to the MoD with properties being released for sale
by Annington as they became surplus to the MoD’s requirements.
Annington’s primary business is renting residential property to
the MoD, conducting periodic rent reviews and selling properties
released by the MoD. Annington also rents residential property
to third parties and has in-house planning and development
expertise. Guy Hands, Terra Firma’s Chairman and Founder,
sourced the Annington investment for Nomura in 1996 and has
managed it on Nomura’s behalf for over 15 years and for the last
ten years whilst at Terra Firma. 
The Enterprise Value is £3.2 billion, comprised of £1 billion in
the form of new equity from a Terra Firma specialist fund and of
new debt financing and assumed existing debt of £2.2 billion.
Guy Hands, Chairman and Chief Investment Officer of Terra Firma,
said: 
“Annington is an outstanding success story. It is a pure play UK
residential property company with a blue chip tenant on a lease
of over 180 years and with the ability to benefit from the
strength of the property market. We look forward to working with
Annington’s management as it moves on to the next stage in its
development.” 
James Hopkins, Chief Executive of Annington Homes, said:
“This transaction enables Terra Firma and Annington to move
forward together with confidence and to continue our track
record of delivery to all our stakeholders.” 
Barclays is the sole financial advisor to Terra Firma Holdings
Limited on its acquisition of Annington Homes. 
For further information:
Finsbury
Andrew Dowler
020 7251 3801 
(kgt)NY 
#<541848.1895494.2.3.0.0.76>#
 
 
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