Grainger and Places for People have announced a deal on the sale of a portfolio of 271 retirement properties for £18.35 million (approx. 21.5 million).
The properties, which are mainly located in the south and south east of England, have been bought by Places for People and comprised part of Grainger's £474 million (approx. 556 million) retirement solutions portfolio. The properties from today's sale were originally acquired as part of Grainger's larger portfolio of reversionary assets.
Instead of selling these assets as they became vacant Grainger working with Girlings, the specialist retirement property lettings manager, assembled a significant portfolio of Assured Tenancies, offering an attractive investment opportunity, which has proved to be successful with this first portfolio sale.
Grainger retains a further portfolio of similar retirement properties. The retirement property sector has seen an increased interest among investors, and today's sale demonstrates Grainger's ability to capitalize on this.
Peter Couch, executive director of Grainger, with responsibility for its retirement solutions business, said:
"This transaction represents a significant portfolio sale for Grainger and follows a program of successful active management aimed at extracting reversionary potential before releasing the assets for sale. Proceeds from the transaction will be used to further reduce the Company's gearing."
David Shaw, Group Director, Development at Places for People said:
"This acquisition is part of a wider strategic program to move into the retirement living sector, and consolidate and expand our stock in key areas.
"It will enable us to continue to offer a broad mix of housing alongside domiciliary care and lifestyle services, assistive technology and bespoke financial products to an older population, which is set to grow by 55% in the next 20 years."
Dickinson Dees advised Grainger on the sale, and Eversheds advised Places for People.