Newcastle's Grainger acquires GRIP REIT firm in £400m deal
Today (November 14), residential landlord Grainger has announced that it has conditionally agreed to acquire the entire share capital and shareholder loans in GRIP REIT plc from its joint venture partner, APG, for £396m.
GRIP is a joint venture between Grainger and APG - currently owned 75.1 per cent by APG and 24.9 per cent by Grainger, which comprises 35 PRS assets with a gross value of £696m.
Following the acquisition, Grainger will become the sole owner of GRIP.
Commenting on the transaction, Helen Gordon, chief executive of Grainger plc, said: “I am pleased to announce the acceleration of our growth strategy in the UK private rented sector with the proposed acquisition of GRIP REIT…
“Our £696m PRS co-investment vehicle with APG, the expansion of our PRS investment pipeline to £1.37bn, and a strong set of financial results for the year.
“The GRIP portfolio, which we have managed since 2013 and therefore know very well, is an exceptional acquisition. It will provide a step change in our investment in the PRS market and generate increased net rental income growth, which in turn will deliver enhanced shareholder returns.”