Grainger plc, the UK’s largest quoted residential property owner and manager, announces that it has exchanged contracts and completed on the sale of its interest in a portfolio of 1,203 properties located across the UK to Clifden Holdings Limited (Clifden), for £87.6 mln.
The properties sold are all residential units that are owned through home reversion plans, the majority of which were originated between 2004 and 2008. As part of the transaction, Grainger will enter into a long-term agreement with Clifden to carry out asset and property management of the portfolio.
Following this transaction, Grainger’s Retirement Solutions business comprises c.3,800 assets with a market value of £345 mln.
Commenting, Andrew Cunningham, Chief Executive of Grainger, said: “This is a significant transaction for Grainger, crystallizing substantial value from part of our Retirement Solutions portfolio while retaining long term fee income. The sale, which is aligned to our current strategy, demonstrates the growing appetite among investors for assets in all segments of the residential property sector.
“The proceeds of the sale will allow the Company to capitalize on attractive, value accretive investment opportunities that it identifies going forward. The residential market, supported by recent Government initiatives, is currently showing strong dynamics, which we believe offer the potential for specialists, such as Grainger, to generate excellent returns on behalf of our shareholders and partners.”
Grainger was advised by Greenhill & Co. International LLP.
Source: FTI Consulting