The Ministry of Defence (MoD) has agreed a deal to purchase approximately 36,000 military homes from Annington for nearly £6bn.
The properties in the married quarters estate (MQE) are located in England and Wales and the deal also includes the acquisition of adjoining land.
The MoD will continue to pay rent on the MQE to Annington until the transaction closes on 9 January next year. This sum is expected to be in the region of £10.3m to £10.5m.
Under the terms of the deal, Annington will surrender its 999-year lease of all the remaining MQE units to the MoD.
The MoD will surrender its leasehold interest in 159 units, which have already been identified to Annington, within circa four months of the deal closing, and Annington will acquire the freehold of those units thereafter.
The MOD has also agreed to transfer additional property to Annington with an aggregate value of £55m following closing. These properties will be identified within 12 months of the deal closing and Annington will acquire the freehold of these units thereafter.
