Last checked at 1 Apr 2010 07:00
1 April 2010
Grainger plc ("Grainger"/ the "Company")
GRAINGER ACQUIRES TENANTED RESIDENTIAL PORTFOLIO IN £15.3 MILLION
OFF-MARKET TRANSACTION
Grainger plc, the UK's largest specialist quoted residential property company, today announces that it has acquired PHA Limited for a total consideration of £15.3m. The company owns 162 residential properties located in Devon. The purchase price reflects a cash on cash yield of 5.7%.
The properties, the majority of which were developed in the 1950's and 1960's, comprise 146 houses, 16 purpose built flats and 73 garages. Fifty of the units are subject to regulated tenancies, twelve are subject to assured tenancies and the remainder are let on Assured Shorthold Tenancies, together with a vacant property, a commercial tenancy and two development sites.
The portfolio currently generates a total rent roll of more than £876,000 per annum. Grainger 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.
Commenting on the transaction, Andrew Cunningham, Chief Executive said;
"Following our successful rights issue, we have been reviewing various acquisition opportunities that fit with our existing holdings and our ongoing asset management strategy, and that will benefit from the activities and expertise of our residential management team.
"This is a significant portfolio, in the south west of the UK, which we have acquired in an off-market transaction. 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."
For further information:
|
Grainger plc |
Financial Dynamics |
| Andrew Cunningham/Dave Butler | Stephanie Highett/Dido Laurimore/Jamie Robertson |
| Tel: +44 (0) 20 7795 4700 Tel: +44 (0) 191 261 1819 | Tel: +44 (0) 20 7831 3113 |