L&Q puts £58m-turnover PRS company up for sale

L&Q is seeking a buyer for its commercial private rented business as part of a strategy to prioritise its “core purpose” as a social housing provider.

The 109,000-home provider has announced that it is seeking a buyer for its subsidiary L&Q PRS Co, which trades under the brand name Metra Living. 

Metra Living posted revenue of £58m in 2023/24 and manages a portfolio of 3,147 homes across 53 schemes in London. Most of the homes were built within the last 10 years. The business made an operating margin of 65% in 2023/24.

However, it made pre-tax losses of £42m in 2023/24 and £88m in 2022/23. Its PRS assets were valued downwards by £32m last year which L&Q said was a reflection of market conditions.

The sale will include the transfer of Metra Living’s 74 staff.

The proposed sale, which L&Q has been exploring for several months, follows the sale of the association’s strategic land business to Urban & Civic in July. Chief executive Fiona Fletcher-Smith said in May that the PRS and strategic land businesses were commercial activities that L&Q “bolted on over the years that don’t make sense anymore.”

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Fletcher-Smith last week said: “We’re proud to have built up a large and highly successful PRS business since entering the market in 2015.

“However, in recent years the social housing sector has faced economic volatility, policy shifts and funding uncertainties. In response we have a clear strategy which is focused on simplifying our business, prioritising our core purpose as a social housing provider, and ensuring every L&Q resident has a safe and decent home with access to services they can rely on. “

She said the sale will enable L&Q to invest more in its existing homes and services and support the delivery of more affordable homes.

BNP Paribas has been appointed to advise on the sale.