Grainger buys out jv partner in £400m deal
Grainger has bought out its joint venture partner APG to acquire GRIP REIT for £396m.
GRIP REIT, which was owned 75.1% by APG and 24.9% by Grainger, has 35 private rented sector assets (circa 1,700 homes) with a gross asset value of £696m.
The acquisition will boost Grainger’s PRS investment pipeline to £1.4bn, in excess of the original target of £850m by 2020, as set out by the management team in January 2016.
Grainger has bought out its joint venture partner APG to acquire GRIP REIT for £396m.
GRIP REIT, which was owned 75.1% by APG and 24.9% by Grainger, has 35 private rented sector assets (circa 1,700 homes) with a gross asset value of £696m.
The acquisition will boost Grainger’s PRS investment pipeline to £1.4bn, in excess of the original target of £850m by 2020, as set out by the management team in January 2016.
The deal will be funded by a £346.7m rights issue fully underwritten by JP Morgan Cazenove and Numis.
Helen Gordon, chief executive of Grainger, said: “The GRIP portfolio will provide a step change in our investment in the PRS market and generate increased net rental income growth, which in turn will deliver enhanced shareholder returns…
“Today’s announcements, highlighting our acceleration of our PRS strategy, coupled with our consistently strong financial performance, gives us confidence in the continued future success of the group.”
Separately, the company has also announced its full-year financial results for the year ended 30 September 2018.
Its net asset value per share rose by 4% to 316p as net rental income rose by 8% to £43.8m. Its dividend per share increased by 8% and it posted net debt of £866m, reflecting ongoing investment into PRS assets.
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