(Alliance News) - Residential landlord Grainger PLC has brushed off a proposed review of the London housing market on Friday, and also announced a debt refinancing.
Mayor of London Sadiq Khan has proposed a review of London's rental market, though this would require parliamentary approval and Khan does not have the power to implement.
"In his statement, the Mayor recognises the difference between build-to-rent and professionally developed and managed properties compared to the wider buy to let sector, and he calls for incentives and support for the build-to-rent and professional rental market in order to protect investment in new housing supply and existing high-quality rental homes," said FTSE 250 member Grainger.
"This aligns to Grainger's strategic aims and our position in the market."
The company said some 22% of its approximate 8,6000 properties are open market rented in the wider London area, meaning any proposals from a review would have a "limited" effect on operations.
On the financing front, Grainger has signed a refinancing With Rothesay Life for the GBP700 million GRIP REIT property portfolio. GRIP used to be a joint venture with investor APG, but Grainger bought out its partner in December, and at that time Grainger had said it would try and refinance the facility for a longer period and at a lower rate.
The old GRIP facility matured in 2020, and the new facility now has a GBP75 million tranche lasting seven years and a GBP200 million chuck for 10 years. The combined facility has a blended interest rate of 2.3%, from 3.2% before.
Chief Executive Helen Gordon said: "We are pleased to secure this new financing from Rothesay Life at attractive long-term rates, which is an endorsement of the quality of the GRIP portfolio."
"This deal supports Grainger's ambition to grow as the UK's leading residential landlord, with a strong balance sheet and financing that matches the long-term, low-risk nature of private rental assets."
Shares in Grainger were up 0.4% at 237.40 pence each in London on Friday morning.
Grainger plc (GRI)