Grainger Plc has announced that it has conditionally agreed to pay £396m to buy the entire share capital and shareholder loans in GRIP REIT plc from its majority joint venture partner APG.
GRIP is a joint venture between Grainger which owns 24.9% and APG which owns 75.1%. GRIP comprises 35 PRS assets, consisting of around 1,700 units in London and south east England, with a gross asset value of around £696m.
Helen Gordon, Chief Executive said: “The GRIP portfolio, which we have managed since 2013 and therefore know very well, is an exceptional acquisition. It will provide a step change in our investment in the PRS market and generate increased net rental income growth, which in turn will deliver enhanced shareholder returns.”
Grainger Plc is already the UK’s largest listed residential landlord with over 9,000 individual units. As a further endorsement of the prospects for the PRS and build to rent sector in the UK the company has already announced plans to invest £1.2bn over 2-3 years to add 5,000 new units to its portfolio.