Grainger and APG form trust to buy residential properties

FTSE 250 residential landlord Grainger has created the GRIP unit trust to acquire a residential property portfolio worth 349.4m pounds.

FTSE 250 residential landlord Grainger has created the GRIP unit trust to acquire a residential property portfolio worth 349.4m pounds.

The trust has been formed by Grainger and APG Strategic Real Estate Pool (APG), Europe's largest pension fund asset manager with €325bn of assets under management.

GRIP, whose aim is to grow by investing in market-let blocks and portfolios focused on Greater London, is to buy a portfolio from G:res, a UK market-rented residential property fund up for liquidation, in which Grainger owns a 26.2% equity stake worth £50.7m.

"In June 2011 G:res shareholders voted to progressively liquidate the fund, and today's announced transaction accelerates that process providing certainty to shareholders ahead of schedule," Grainger said.

APG is investing £158m in GRIP, while Grainger will co-invest £59m, made up of its proceeds from its G:res stake and £9.1m in new equity.

Grainger will provide fund, asset and property management services to GRIP and will be paid management fees in line with those it would have received for G:res.

"We are delighted to be establishing this partnership with APG, one of the world's largest and most experienced institutional real estate investors, who are well known for long term, responsible investment," said Chief Executive Andrew Cunningham.

"We see APG's commitment as a clear acknowledgement of UK residential property's growing appeal as an institutional asset class, as well as a significant endorsement of Grainger's expertise in the UK residential sector and the strength of our operational platform."

Recommended

Imperial Brands has an 8.3% yield – but what’s the catch?
Share tips

Imperial Brands has an 8.3% yield – but what’s the catch?

Tobacco company Imperial Brands boasts an impressive dividend yield, and the shares look cheap. But investors should beware, says Rupert Hargreaves. H…
20 May 2022
Investing in drugmakers: uncommon profits from curing rare diseases
Share tips

Investing in drugmakers: uncommon profits from curing rare diseases

Treatments for medical conditions with only a small number of sufferers can still be very attractive for pharmaceutical companies and investors becaus…
20 May 2022
Share tips of the week – 20 May
Share tips

Share tips of the week – 20 May

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
20 May 2022
Delivering profits: should you buy Royal Mail shares?
Share tips

Delivering profits: should you buy Royal Mail shares?

The volume of parcels delivered by Royal Mail soared during the pandemic, and so did its profits. But it has been coming under pressure lately. So, as…
19 May 2022

Most Popular

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves looks at the FTSE 100’s top yielding stocks for income investors to consider.
18 May 2022
Aviva: a share for income investors to tuck away
Share tips

Aviva: a share for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
18 May 2022
Despite the crypto crash, bitcoin still has a bright future
Bitcoin & crypto

Despite the crypto crash, bitcoin still has a bright future

Cryptocurrencies have crashed hard, with bitcoin down by more than 50% from its peak. But, says Dominic Frisby, bitcoin still has a future – it is the…
19 May 2022