Acquisition

RNS Number : 5886J

Grainger PLC

01 April 2010

 



 

 

 

 

1 April 2010

 

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

GRAINGER ACQUIRES TENANTED RESIDENTIAL PORTFOLIO IN £15.3 MILLION

OFF-MARKET TRANSACTION

Grainger plc, the UK's largest specialist quoted residential property company, today announces that it has acquired PHA Limited for a total consideration of £15.3m. The company owns 162 residential properties located in Devon.  The purchase price reflects a cash on cash yield of 5.7%.

The properties, the majority of which were developed in the 1950's and 1960's, comprise 146 houses, 16 purpose built flats and 73 garages.  Fifty of the units are subject to regulated tenancies, twelve are subject to assured tenancies and the remainder are let on Assured Shorthold Tenancies, together with a vacant property, a commercial tenancy and two development sites.

The portfolio currently generates a total rent roll of more than £876,000 per annum. Grainger estimates the portfolio value to be £17.2m. Whilst the portfolio has been very well maintained over the years there remain numerous opportunities to enhance income and extract the reversionary value through selective refurbishment and modernisation.

Commenting on the transaction, Andrew Cunningham, Chief Executive said;

"Following our successful rights issue, we have been reviewing various acquisition opportunities that fit with our existing holdings and our ongoing asset management strategy, and that will benefit from the activities and expertise of our residential management team.

"This is a significant portfolio, in the south west of the UK, which we have acquired in an off-market transaction. We have a strong presence in this area, understand the local market well, and therefore believe that this acquisition offers a number of opportunities for us to deploy our property and asset management expertise, creating value over the medium to long term."

For further information:

Grainger plc	Financial Dynamics
Andrew Cunningham/Dave Butler	Stephanie Highett/Dido Laurimore/Jamie Robertson
Tel: [phone] Tel: [phone]	Tel: [phone]

 

END

 

 

ACQSDLEFFFSSEID