Refinancing of equity release portfolio

RNS Number : 1281L

Grainger PLC

27 July 2011

 



27 July 2011

Grainger plc

Grainger Equity Release Limited ("GERL") and MREF II Equity Release Limited joint venture conclude successful refinancing of equity release portfolio

Grainger plc ("Grainger" or the "Company" or the "Group"), the UK's largest quoted residential property owner, today announces the successful £31.5m refinancing of assets held by the Sovereign Reversions business.

The Sovereign Reversions business is held in a 50:50 joint venture (the "Joint Venture") which was formed by Grainger Equity Release Limited ("GERL"), a subsidiary of Grainger plc, and MREF II Equity Release Limited, a subsidiary of Moorfield Real Estate Fund II ("Moorfield"), to own the assets of Sovereign Reversions. GERL manages the assets on behalf of the Joint Venture.

The Joint Venture has agreed a £31.5m five year term facility from Barclays to Sovereign Reversions Limited and its subsidiary The Welfare Dwellings Trust Limited, financed against 790 properties subject to home reversion plans.  Grainger and Moorfield repaid the pre-acquisition debt from Bank of Scotland and Allied Irish Bank in January 2011 and self-financed in the interim 6 months. The proceeds of today's refinancing will be repatriated in equal shares to Grainger plc and Moorfield.

Commenting on behalf of the Joint Venture, Peter Couch, Chief Operating Officer and Executive Director, Retirement Solutions said:

"Grainger is now coming up to its first anniversary of owning the Sovereign business and it is around nine months since the establishment of the joint venture with Moorfield. We are very pleased with the progress achieved in terms of asset managing the portfolio. The conclusion of this successful refinancing is further evidence of this, which will provide the portfolio with ongoing stability."

-ENDS-

For further information:

Grainger plc	Financial Dynamics
Kurt Mueller	Stephanie Highett / Dido Laurimore / Will Henderson
Tel: [phone] Mob: [phone]	Tel: [phone]
Peter Couch Tel: [phone]

 

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