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

Three top-notch Asian stocks to buy
Share tips

Three top-notch Asian stocks to buy

Professional investors Adrian Lim and Pruksa Iamthongthong, managers of the Asia Dragon Trust, pick three of their favourite Asian stocks to buy now.
23 Sep 2022
Why you should short this broadband satellite company
Trading

Why you should short this broadband satellite company

With an ill-considered business plan, broadband satellite company AST SpaceMobile is doomed to failure, says Matthew Partridge. Here's how to short th…
23 Sep 2022
Share tips of the week – 23 September
Share tips

Share tips of the week – 23 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Sep 2022
Momentum investing – and why price matters more than anything else
Investment strategy

Momentum investing – and why price matters more than anything else

The recent fashion for momentum investing, with investors piling into expensive growth stocks, is nothing new, says Merryn Somerset Webb. And the dang…
21 Sep 2022

Most Popular

Could gold be the basis for a new global currency?
Gold

Could gold be the basis for a new global currency?

Gold has always been the most reliable form of money. Now collaboration between China and Russia could lead to a new gold-backed means of exchange – g…
22 Sep 2022
Paypal, bitcoin, and the weaponisation of money
Bitcoin & crypto

Paypal, bitcoin, and the weaponisation of money

Recent events have shown how both business and governments can “weaponise” money and shut down dissent. What to do? Buy bitcoin, says Dominic Frisby.
22 Sep 2022
Why you should short this broadband satellite company
Trading

Why you should short this broadband satellite company

With an ill-considered business plan, broadband satellite company AST SpaceMobile is doomed to failure, says Matthew Partridge. Here's how to short th…
23 Sep 2022