Grainger plc, the UK's largest quoted residential landlord, has announced that it has acquired the entire shareholding in The Tilt Estate Company Limited, which owns over 300 residential units, for £47.9 million (c. €65m). The total property portfolio is valued at £62.5 million (c. €84m) and is located in East Dulwich, London, SE22, with the majority of properties situated around a private garden square.
Two thirds of the properties are subject to assured shorthold tenancies and over 50 are subject to regulated or assured tenancies. They therefore increase and strengthen Grainger's existing portfolios. In addition, the portfolio is in line with the Company's acquisition criteria, as it offers a number of opportunities for Grainger's in-house property and asset management teams to add value. This is particularly significant to ensure the benefits from any potential long term upside in this improving area are delivered.
The portfolio currently generates a total rent roll of £2.2 million per annum. A number of the properties are currently vacant and therefore offer immediate opportunities to enhance income and the assets' underlying value.
The purchase, from Wainford Holdings Limited, has been funded from existing facilities.
Commenting on the acquisition, Rupert Dickinson, Chief Executive of Grainger, said, "This is an excellent opportunity to buy a substantial portfolio comprising a large number of quality assets that offer an excellent strategic fit with our existing holdings. We were delighted to have secured this portfolio off-market through our extensive network of contacts.
"We are particularly pleased to acquire these substantial Victorian properties in an area of London that has such potential for future growth. The vendor has developed excellent relationships with the tenants in this sought after rental location. We look forward to using our property and asset management expertise to further enhance the value of the portfolio."
Colliers CRE acted on behalf of Grainger.