Grainger farms out German portfolio

Grainger, the UK's largest listed residential owner and manager, said it had signed up for a joint venture, to which it will hand around half of its German assets.

Grainger, the UK's largest listed residential owner and manager, said it had signed up for a joint venture, to which it will hand around half of its German assets.

The company has done a deal with global real estate investment firm Heitman, creating a company that will invest in around 3,000 unit German rented residential portfolio currently wholly owned by Grainger.

The joint venture will be 75:25 owned by Heitman and Grainger respectively and has a long-term strategy aimed at maximising returns through income growth and active asset management.

"The transaction will allow Grainger to leverage its management platform, acting as the JV's expert partner in German residential property investment," the firm said.

"Grainger will receive fee income for its services to the joint venture and also retain a strategic stake in the portfolio."

The portfolio of German residential assets represents €232m of Grainger's total €474m German portfolio as at 31st March.

It comprises 2,985 residential units across six regions in Germany and produces an approximate annualised profit of €5.2m, including revaluation gains, Grainger said.

The firm added that the deal would give rise to a one-off post tax charge currently estimated at £5.2m (€6.5m) including costs.

This will be taken into account in the income statement for the year ended 30th September 2012 as a non-recurring item.

MM

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
6 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

NS&I brings back one-year fixed bonds with highest rates since 2010
Personal finance

NS&I brings back one-year fixed bonds with highest rates since 2010

NS&I’s one-year fixed bonds are back on sale after being pulled off the market in 2019 - but is the rate any good?
1 Feb 2023
How to invest like an ISA millionaire
Investments

How to invest like an ISA millionaire

We reveal the top funds and trusts ISA millionaires pumped their money into
6 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
6 Feb 2023