Grainger plc Regulatory News (GRI)

LEI: 2138007CEIRKZMNI2979

9 May 2018

Grainger plc

Acquisition

Grainger's PRS joint venture with APG, GRIP REIT, agrees to forward fund and acquire a 132 home PRS build to rent scheme in Southampton for c.£27m

Grainger plc, the UK's largest listed residential landlord, today announces that its GRIP REIT joint venture with APG, a private rented sector (PRS) investment vehicle, has unconditionally agreed to forward fund and acquire a 132 home PRS, build to rent development, in Southampton from National Regional Property Group for c.£27m.

The investment is expected to generate a gross yield of over 6.5% once stabilised, with completion anticipated in late 2020.

National Regional Property Group will develop the site and P.M.C Construction, a Hampshire based contractor, will construct the scheme.

This is a highly attractive investment in central Southampton with strong future prospects and is well aligned to GRIP REIT's predominantly London and the South East investment focus. In addition to its share of the rental income, Grainger will receive management fees, supplementing its overall returns.

GRIP REIT is focused on PRS investments in London and the South East and is 25% owned by Grainger and 75% owned by APG. Grainger is the property, asset and development manager for the REIT.

Helen Gordon, Chief Executive of Grainger, said:

"Today's acquisition is confirmation of our ability to continue to source new and exciting PRS investment opportunities in attractive locations with compelling returns. Southampton is a target location for Grainger and this scheme on East Street will deliver 132 new high quality, purpose built rental homes and will allow us to utilise our operational base in Hampshire and provide our customers with great service and a great property to live in."

Mike Harris, Director of Growth at Southampton City Council, said:

"The development at East Street reinforces the importance of Southampton having a City Centre Master Plan. It gives developers the confidence to be part of the transformation of this part of the city centre, which is currently undergoing significant redevelopment.

"The provision of high quality apartments in the build to rent sector contributes to attracting and retaining talent in the city, which continues to drive the economic growth of Southampton. This £27m mixed-use regeneration project is a predominantly residential led scheme, adding to the city's emerging private rental sector offering."

-ENDS-

For further information:

Grainger plc

Kurt Mueller

Tel: +44 (0) 20 7940 9500

Camarco

Ginny Pulbrook / Geoffrey Pelham-Lane

Tel: +44 (0) 20 3757 4992/4985