Grainger today announces that it has completed the sale of a portfolio of 366 residential properties on behalf of administrators Ernst and Young for £39.1 mln (approx. 48 mln) to Europa Capital and Addington Capital. This sale marks the largest portfolio sale by Grainger through the Residential Asset Management Platform ('RAMP'), developed by Lloyds Banking Group. Grainger has managed this portfolio and others, totaling 3,000 properties, since 2011.
This is the second sale from RAMP of an investment portfolio, with the other sales being of individual properties through private sales to owner occupiers and small scale buy to let investors. The previous investment sale comprised 274 income producing properties for £10.8 mln (approx. 13.4 mln).
The remainder of the sales through RAMP have been as individual property sales to private owner occupiers and small scale buy-to-let investors. Total sales through RAMP now stand at £145 mln (approx. 181 mln) for 1,477 units. The sales achieved so far demonstrate Grainger's ability to deliver value enhancement through active management of diverse residential assets and the success of Lloyds Banking Group's RAMP concept.
RAMP provides combined asset management and property management on residential portfolios for select third parties, including Ernst and Young, Deloitte, KPMG, BDO and BNP Paribas.
The properties in today's investment portfolio sale are located in a number of regions, including 11 cities. The 366 assets within the portfolio are primarily student houses, of which 302 are tenanted. The portfolio is therefore producing a strong rental income, making it an attractive acquisition for the investors on a commercial income stream consideration.
Alex Greaves, Grainger's Director of RAMP, said:
"Today's sale demonstrates the ability of Grainger to identify and secure value in a challenging housing market. The assets disposed comprise an income producing portfolio aimed at the investor seeking critical mass and a strong and robust income stream.
"Despite on-going negative sentiment on the state of economy, we continue to see new investors attracted to the residential market in pursuit of attractive income returns. Grainger clearly provides a valuable service to the market, demonstrated by its success so far in managing assets within RAMP, and we look forward to securing further mandates."
Source: FTI Consulting