In a landmark move, Lloyds Banking Group has signed contracts selecting Grainger plc, the UK's largest quoted residential property company, as the preferred supplier to the Residential Asset Management Platform ('RAMP') for the bank and to subsequently manage the assets which are placed into it, following commencement of an insolvency process. This deal between Lloyds Banking Group's Commercial Real Estate Business Support Unit team and Grainger is the first of its kind in the UK.
The creation of RAMP leverages Grainger's UK-wide asset management platform and expertise of owning and managing residential assets. Grainger currently manages a portfolio in the UK comprising approximately 20,000 residential assets and therefore has the specialist expertise, skills and operational platform already in place to be able to immediately provide strategic and asset management services nationwide.
The agreement with Lloyds Banking Group represents a further step forward in Grainger's strategy to increase revenues from its existing resource base. Grainger will receive fees based on rent, disposals and shared success fees, thereby fully aligning its interests with those of any Administrator or Receiver of any assets placed into the RAMP.
Grainger's fund and asset management and property services teams, led by Fund Manager, Alex Greaves, and Deputy Managing Director of Property Services, Anish Thobhani, worked on the winning bid, leading to Grainger's appointment by Lloyds Banking Group.
Commenting on the announcement, Nick Jopling, Grainger's Executive Property Director said: "This is an important milestone for Grainger and we are excited to have been selected by Lloyds to work on the creation and management of RAMP. This transaction plays to Grainger's unique skill set and established track record of managing residential assets across the UK. The offer that our property services and asset management teams brought together to the bid clearly demonstrates that Grainger's operational platform offers real value enhancement in residential investment.
"The transaction will deliver to Grainger a recurring income stream with the potential for further upside without the need to commit any Group equity or debt."
Source: FD
