Nick Leslau is taking a £234m bet that house prices will rise over the next 10 years. Sunday Times

Leslau has struck a complex property derivative deal with Swiss Re, which will net him huge gains if UK house prices rise in value.

Leslau will pay a lump sum of £234m to Swiss Re, which will gain him exposure to house-price inflation on a portfolio of 3,400 homes spread across the UK. The properties will continue to be managed by Swiss Re. They are connected to equity-release policies, acquired as part of Swiss Re’s acquisition of GE Life in 2006.

The average age of the tenants in Swiss Re’s deal with Leslau is 82, so it is expected the majority of the properties will be sold off over the next decade. When a property is sold, Leslau’s company Prestbury will be entitled to a share of the proceeds.

The transaction reduces Swiss Re’s exposure to UK house prices.