annington annual rep 2019-web - Page 6



Strategic report | The business
The business
THE BUSINESS
GROUP OVERVIEW
The Annington Group (the “Group”),
headed by Annington Limited, is one of
the largest private owners of residential
property in the United Kingdom. The
primary asset of the Group is a portfolio
of residential property units (“Units”)
which was acquired from the Ministry
of Defence of the United Kingdom
(the “MoD”) on 5 November 1996 for
a total consideration of £1.656 billion
(the “1996 Acquisition”), the largest
ever acquisition of its kind in the United
Kingdom. Collectively, these properties
are referred to herein as the Married
Quarters Estate (“MQE”). The MoD is
responsible for the management and
maintenance of the properties it leases,
but when the MoD wishes to terminate
its lease, the properties are released
to the Group, refurbished, and made
available for private rental or for sale at
open market prices.
6 | Annington Limited Annual Report & Accounts 2019
On acquisition in November 1996, the
Group’s investments consisted of:
765 sites on which one or more
Units were located (“Sites”), almost
all on 999-year leases, comprising
55,060 Units (the “Retained Estate”),
which were then leased back to
the MoD for a term of 200 years to
provide the majority of the MoD’s
subsidised accommodation (“Service
Family Accommodation”) for Service
Families. The MoD subsequently
combined various Units to create
larger single properties, such that the
revised total number of Units within
the original Retained Estate was
55,051;
58 Sites comprising 2,374 Units
(the “Surplus Estate”), which were
no longer required by the MoD for
purposes of providing Service Family
Accommodation; and
certain related assets (“Related
Assets”), consisting primarily of
buildings used for purposes such as
housing administration and welfare
offices, community centres, crèches
and thrift shops, as well as playground
areas, sports pitches, tennis and
squash courts and undeveloped open
spaces.
As at 31 March 2019 the Group’s
investment properties consisted of:
the MQE Retained Estate, comprising
38,726 Units (“Retained Units”) (2018:
38,969) and 181 Related Assets
(2018: 181), representing the majority
of the MoD’s total Service Family
Accommodation, and the MQE
Surplus Estate comprising 251 Units
(“Surplus Estate”) (2018: 14); and
the “Non-MQE Portfolio”, a separate
property portfolio of private rented
sector (“PRS”) accommodation which,
as at 31 March 2019, consisted of
1,607 (2018: 1,365) property units
let on bulk or assured shorthold
tenancies.
At that date, the Group was constructing
a further 256 units (2018: 378) and
held 5 completed development
units (2018: nil).
The Annington Group
is one of the largest
private owners of
residential property
in the United Kingdom.
Annington Limited Annual Report & Accounts 2019 | 7

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