Grainger profit £10 million from property sale
Residential landlords Grainger plc have sold their stake in a portfolio of 1,203 properties across the country, raising nearly £10 million profit.
The Newcastle-based firm sold to Irish property outfit Clifden Holding Limited for £82.6 million in a deal that was subject to Financial Conduct Authority approval.
Grainger say the proceeds of the sale will help to create extra headroom in their future investments.
The sale was made through a subsidiary of Grainger’s Retirement Solutions business, which is now said to have a market value of £345 million.
As part of the agreement, Grainger will provide management of the properties for Clifden, for a fee of more than £0.6 million.
Andrew Cunningham, chief executive of Grainger, said: “This is a significant transaction for Grainger, crystallising substantial value from part of our Retirement Solutions portfolio while retaining long term fee income.
“The sale, which is aligned to our current strategy, demonstrates the growing appetite among investors for assets in all segments of the residential property sector.
“The proceeds of the sale will allow the Company to capitalise on attractive, value accretive investment opportunities that it identifies going forward.
“The residential market, supported by recent Government initiatives, is currently showing strong dynamics, which we believe offer the potential for specialists, such as Grainger, to generate excellent returns on behalf of our shareholders and partners.”
This was posted in Bdaily's Members' News section by Tom Keighley .