Patron Capital has acquired additional interests in CALA Group, the UK housebuilder, and Retirement Bridge Group, the home reversion equity release provider, from Electra Private Equity.
Separately, via Retirement Bridge Group, Patron has agreed to acquire Sovereign Reversions from Lone Star.
Electra invested in CALA and Retirement Bridge Group alongside Patron. In the case of CALA, it was a minority investor in Patron and Legal & General’s acquisition of the business from Lloyds Banking Group, and in the case of Retirement Bridge Group it was a 50:50 joint venture partner in the carve-out of the business from Grainger.
Following this acquisition, Patron will own 100% of Retirement Bridge Group.
Sovereign Reversions comprises around 700 UK home reversion equity release assets, similar to those in the existing Retirement Bridge Group portfolio. The Sovereign Reversions portfolio is already managed by Retirement Bridge Group under a management agreement. Following the deal, Retirement Bridge Group will own more than 4,100 equity release assets with a combined vacant possession value of around £600m.
Keith Breslauer, managing director of Patron Capital, said: “This was a welcome opportunity to increase our stake in two highly successful investments that are performing ahead of expectations. CALA continues to trade extremely well and our Retirement Bridge deal was recently shortlisted for ‘Deal of the Year’ at Property Week’s Property Awards.
“Our purchase of Sovereign Reversions is in line with our business plan to grow Retirement Bridge Group through add-on acquisitions and new originations. We have created a strong and scalable platform and Sovereign will be highly complementary to the existing portfolio.”
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