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

How to invest today? Look to the past, not the future
Investment strategy

How to invest today? Look to the past, not the future

The past few years have seen so many changes to our way of life that many people said we had entered a “new normal”. But as it turns out, the new norm…
18 Aug 2022
A new legal headache for Haleon
Stocks and shares

A new legal headache for Haleon

Haleon, GSK’s former consumer-products arm, spun off last month, has made a dismal debut on the stockmarket.
17 Aug 2022
Persimmon yields 12.7%, but can you trust it to deliver?
Share tips

Persimmon yields 12.7%, but can you trust it to deliver?

With a dividend yield of 12.7%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate a com…
17 Aug 2022
Cineworld faces a bleak future – investors should stay away
Share tips

Cineworld faces a bleak future – investors should stay away

Weighed down by crippling debts and with consumers tightening their belts, Cineworld's future does not look bright, says Rupert Hargreaves. Investors …
17 Aug 2022

Most Popular

Investors should get ready for a political revolution
UK Economy

Investors should get ready for a political revolution

Liz Truss will beat Rishi Sunak, cut taxes, and then shake up the Bank of England, says Helen Thomas
15 Aug 2022
How to protect your wealth as inflation hits new record highs
Investment strategy

How to protect your wealth as inflation hits new record highs

UK inflation has hit a new record high of 10.1%. It's going to hurt, says Dominic Frisby. Here's how you can protect your wealth.
17 Aug 2022
Don’t listen to the doom-mongers – the future is bright
Economy

Don’t listen to the doom-mongers – the future is bright

With volatile markets, raging inflation and industrial unrest, it may feel like things are bad and likely to get worse. But the end of the world is no…
15 Aug 2022