Re. Agreement with Lloyds Banking Group

RNS Number : 8650F

Grainger PLC

04 May 2011

 

 

4 May 2011

 

Grainger plc ("Grainger"/ the "Company")

GRAINGER SELECTED BY LLOYDS BANKING GROUP FOR ITS RESIDENTIAL ASSET MANAGEMENT PLATFORM

In a landmark move, Lloyds Banking Group has today signed contracts selecting Grainger plc, the UK's largest quoted residential property company, as the preferred supplier to the Residential Asset Management Platform ('RAMP') for the bank and to subsequently manage the assets which are placed into it, following commencement of an insolvency process. This deal between Lloyds Banking Group's Commercial Real Estate Business Support Unit team and Grainger is the first of its kind in the UK.

The creation of RAMP leverages Grainger's UK-wide asset management platform and expertise of owning and managing residential assets. Grainger currently manages a portfolio in the UK comprising approximately 20,000 residential assets and therefore has the specialist expertise, skills and operational platform already in place to be able to immediately provide strategic and asset management services nationwide.    

The agreement with Lloyds Banking Group represents a further step forward in Grainger's strategy to increase revenues from its existing resource base. Grainger will receive fees based on rent, disposals and shared success fees, thereby fully aligning its interests with those of any Administrator or Receiver of any assets placed into the RAMP.

Grainger's fund and asset management and property services teams, led by fund manager, Alex Greaves, and deputy managing director of property services, Anish Thobhani, worked on the winning bid, leading to Grainger's appointment by Lloyds Banking Group.

Commenting on the announcement, Nick Jopling, Grainger's Executive Property Director said:

"This is an important milestone for Grainger and we are excited to have been selected by Lloyds to work on the creation and management of RAMP. This transaction plays to Grainger's unique skill set and established track record of managing residential assets across the UK. The offer that our property services and asset management teams brought together to the bid clearly demonstrates that Grainger's operational platform offers real value enhancement in residential investment."

"The transaction will deliver to Grainger a recurring income stream with the potential for further upside without the need to commit any Group equity or debt."

For further information:

Grainger plc	Financial Dynamics
Dave Butler	Dido Laurimore/Stephanie Highett Will Henderson
Tel: [phone] Tel: [phone]	Tel: [phone]

Notes to Editors

Grainger plc is the largest residential property owner and manager traded on the London Stock Exchange. Our business activities in the UK and Germany cover ownership, trading, fund management, property management and development of residential property. Grainger is also a leading provider of retirement housing solutions, including home reversion products through Bridgewater Equity Release. We have approximately £2.1bn of wholly-owned property assets and £2.8bn of assets under management.

 

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