Grainger upbeat despite challenges

Residential housing specialist Grainger said its sales pipeline in the four months to 31 January fell to £76.2m from £94.8m the same time a year earlier as challenging economic conditions continue. During the four months period the property business, headquartered in Newcastle upon Tyne, said it completed sales of 216 units for a gross consideration of £37.4m at an estimated trading margin on sales of vacant properties of 40.3%.The group's sales pipeline totaled £56.1m at 31 January 2011.Chief executive Andrew Cunningham commented, "We are actively managing our specialist portfolio which continues to demonstrate its defensive qualities and liquidity whilst maintaining future upside." The group said its acquisition of the Hi Tricomm MOD residential portfolio from Invista earlier this month, "will be accretive to both NAV and recurring profit in the current year."Grainger said net debt was £1,300m for the period compared to £1,360m at 30 September 2010. The estimated loan to value ratio on the core borrowing stood at 53.2%. Cunningham added, "Whilst wider economic conditions are challenging, our portfolio and strategy continues to demonstrate resilience. The company's focus remains on managing our portfolios...whilst using our specialist property management skills to derive further income and continuing to seek accretive acquisitions and business development opportunities that create sustainable value on a highly selective basis." Grainger plc