Barratt Developments has agreed the future sale of 604 homes to subsidiary of Lloyds Banking Group – Citra Living – for a total cash consideration of £168.4m.
With the sale of the homes to Citra Living, Barratt will recognise revenue and profit on the legal completion of each home under this future sale agreement.
“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.”David Thomas, Chief Executive, Barratt Developments
Of the 604 homes included within this transaction, in excess of 500 are expected to be legally completed and transferred to Citra Living’s ownership over the 12 months to 30 June 2024.
“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.”Andy Hutchinson, Managing Director, Citra Living
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.
Earlier in the year, Citra Living acquired an office-to-residential apartment portfolio at Ford’s Former European HQ in Essex from the Land Charter Group.