Grainger exits majority of German portfolio

RNS Number : 9994U

Grainger PLC

13 April 2016

 

13 April 2016

Grainger plc

("Grainger", the "Group", the "Company")

Grainger exits majority of remaining German portfolio

Grainger, the UK's largest listed residential landlord, today announces that it has signed contracts to sell the majority of its remaining German residential property portfolios to the listed German residential investment company, LEG Immobilien AG, for a gross consideration of c.€53.0m (c.£42.4m) (1).  

This transaction is in line with Grainger's new strategy of simplifying its business to focus on investment in the UK private rented sector.

The portfolio was previously valued at c.€56.3m (c.£45m). Today's transaction will generate a loss of c.€3.7m including fees, which will be treated as a non-recurring item.

The portfolio comprises c.1,100 residential units located in the Northrhine-Westphalia region. It generated a gross rental income of €4.0m (£3.0m) and a loss before tax of €3.7m (£2.7m) in the last financial year.

Taking account of this transaction which is expected to complete in coming months following regulatory approval by the German Federal Cartel Office, and the previously announced investment and management platform disposals, Grainger will have less than €11m (£8.8m) of remaining assets in Germany, more than half of which is already under offer for sale.

Over the course of the financial year, the company has sold the bulk of its German business interests for an aggregate gross consideration of c.€225m and overall the company expects to achieve a modest profit from its divestment in Germany.

Commenting, Helen Gordon, chief executive of Grainger, said:

"We are pleased to be concluding our divestment programme in Germany, enabling Grainger to focus its full attention on its stated strategy of investing in the UK private rented sector."

-ENDS-

For further information, please contact:
Grainger plc	Camarco
Helen Gordon / Kurt Mueller	Geoffrey Pelham-Lane / Ginny Pulbrook
Telephone: [phone]	Telephone: [phone]/ 4985

(1)  Subject to completion adjustments

 

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