Portfolio sale to Citra Living
30 June 2023
Barratt Developments PLC
Portfolio sale to Citra Living
Barratt Developments PLC ("Barratt") today announces the agreed future sale of 604 (1) homes to Citra Living Properties (No. 1) Limited ("Citra"), a wholly owned subsidiary of Lloyds Banking Group plc ("Lloyds") for total cash consideration of £168.4m (1) (2).
Barratt will recognise revenue and profit on the legal completion of each home under this future sale agreement. Of the 604 homes included within this transaction, in excess of 500 are expected to be legally completed and transferred to Citra's ownership over the 12 months to 30 June 2024. The remaining homes will be completed and transferred in the financial year to 30 June 2025, reflecting the variations in both site development stages and build scheduling, across the sites included in this transaction.
David Thomas, Chief Executive of Barratt said:
"We are delighted to announce a significant step forward in our partnership with Citra, who share our commitment to delivering a wide range of high-quality, sustainable homes and communities across the UK.
Since forming our strategic partnership in 2021, we have agreed the sale of some 502 homes on individual sites to Citra. Our focus on quality and the environmental performance of our homes has enabled us to assemble an attractive portfolio of homes in desirable locations for private rental.
The single-family dwelling segment of the private rental sector continues to grow strongly and presents an opportunity for us to both diversify our revenues against the current challenging market backdrop and develop communities which encompass all forms of housing tenure."
Andy Hutchinson, Managing Director of Citra Living, said:
"Our goal at Citra is to bring much needed high quality homes to the UK rental market, to help create balanced communities in the places that people want to live. Our partnership with Barratt helps us achieve that goal and will contribute to delivering much needed housing stock across the UK."
Notes:
(1) Within the 604 home portfolio there are 195 homes across four developments, with a gross asset value of £21.5m, which are conditional on the satisfactory completion of due diligence by Citra.
(2) The current gross asset value of the 604 homes included within this transaction is £72.4m. This is comprised of the current balance sheet aggregate value of the land and work in progress as at the date of this announcement and reflects the part-completed nature of the homes.
For further information, please contact:
Barratt Developments PLC:
Analyst / investor enquiries
Mike Scott, Chief Financial Officer 07881 327 748
John Messenger, Group Investor Relations Director 07867 201 763
Media enquiries
Tim Collins, Group Corporate Affairs Director 020 7299 4874
Brunswick
Jonathan Glass / Rosie Oddy 020 7404 5959
Barratt Developments PLC LEI: 2138006R85VEOF5YNK29
Information on Citra Living:
Citra Living, a wholly owned subsidiary of Lloyds Banking Group, was launched in July 2021, with the aim of addressing the increased demand for rental properties by building new quality homes through strategic partnerships with leading developers and housebuilders.
Citra Living and Barratt Developments PLC formed a strategic partnership in 2021 to deliver 1,000 homes per year, working together, on a site-by-site basis, to develop incremental housing stock for the rental market. One of the ambitions of this partnership with Barratt is also to focus on the environmental standards of properties, as one of the future key priorities.
The first development in this partnership involved 150 homes at Ladden Garden Village between Bristol and Bath with further sites added over the past 12 months and additional sites planned for the future, building on the transaction announced today.
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