Grainger refinances £275m of debt for GRIP acquisition

Grainger has agreed a £275m debt refinancing with Rothesay Life, finalising its integration of the GRIP portfolio. It secured the refinance, comprising a £75m tranche for seven years and a £200m tranche for 10 years, with a blended interest rate of 2.3%. This compares to a previous rate of 3.2%. The refinancing is the final stage in Grainger’s acquisition of the £700m GRIP portfolio. Grainger acquired the full interest in the portfolio of PRS homes from APG, its JV partner in the venture, in December last year. It follows a restructuring of the vehicle and refurbishments of units, which successfully delivered savings of around £4m, reducing operating costs from 32% to 26%. Grainger chief executive Helen Gordon said: “This deal supports Grainger’s ambition to grow as the UK’s leading residential landlord, with a strong balance sheet and financing that matches the long-term, low-risk nature of private rental assets.” To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette