Grainger makes Devon acquisition

Residential property investor Grainger has acquired PHA Limited, which owns 162 homes in Devon, for £15.3m. The properties, comprising 146 houses and 16 flats, were built in the 1950s and 1960s.Grainger says the properties generate total rental income of more than £876,000 a year and estimates the portfolio value to be £17.2m.'Whilst the portfolio has been very well maintained over the years there remain numerous opportunities to enhance income and extract the reversionary value through selective refurbishment and modernisation,' Grainger said. Grainger has been on the lookout for acquisitions after a rights issue last year to raise about £250m. On Monday it confirmed that it has made a preliminary approach to AIM-quoted property acquirer Sovereign Reversions which could be worth 185p a share.Grainger chief executive Andrew Cunningham said the acquisition would fit well with the company's other activities in the south west of England.'We have a strong presence in this area, understand the local market well, and therefore believe that this acquisition offers a number of opportunities for us to deploy our property and asset management expertise, creating value over the medium to long term,' he said. Grainger plc