Grainger plc Regulatory News (GRI)

09 February 2016

Grainger plc

Grainger and APG's PRS Fund, GRIP makes £57.3M London PRS acquisition

GRIP, the market-let UK residential property fund owned by Grainger and APG, announces that it has acquired the freehold interest in Kew Bridge Court, an unbroken, predominantly private rented residential estate of 94 flats, 4 houses and 80 car parking spaces in Kew Bridge, London W4, for a total consideration of c.£57.3m. The asset has been acquired from a partnership managed by Residential Land.

This transaction follows on from Grainger's Strategy Update on 28 January 2016, where the ambition was set out to become the UK's leading private landlord and the plan to invest over £850m in the UK private rented sector (PRS), including GRIP, over the next 3-5 years.

In addition to the existing assets at Kew Bridge Court, the estate has asset management and development potential, including planning consent for five additional units. As we deliver improvements, we expect to achieve gross rental income of approaching £3m per annum. We also see good potential for rental growth and capital appreciation over the next few years.

Kew Bridge Court occupies a 2.2 acre site opposite the entrance to Kew Bridge Overground Station in the London Borough of Hounslow and is 30 minutes from central London.

GRIP was set up early 2013 and is 25:75 backed by Grainger and APG respectively, with Grainger providing asset and property management services that cover overhead costs and supplement returns.

With a PRS portfolio of c.1,800 units and a gross asset value in excess of £500m, GRIP has a London and South East focus and is looking to invest further in the coming years. This will include stabilised tenanted assets and build to rent development opportunities, such as its investment in Hallsville Quarter in Canning Town, London which consists of 134 units (due for completion in September 2017).

Helen Gordon, CEO of Grainger, said:

"Kew Bridge Court is a high quality PRS portfolio in a very attractive and highly sought after area of London. This portfolio demonstrates further acceleration of growth in our PRS business and the support we have from our investment partner, APG, to continue to expand GRIP's portfolio in London and the South East. This was a rare opportunity to acquire a stabilised asset of scale, in one of our prime target markets."

-ENDS-

For further information:

Grainger plc

Helen Gordon / Kurt Mueller

+44 (0) 20 7940 9500

Camarco

Ginny Pulbrook / Geoffrey Pelham-Lane

+44 (0) 3757 4992/ 4985