16th Apr 2014 08:00
LONDON (Alliance News) - Grainger PLC Wednesday said it has acquired a tenanted residential property portfolio in London for GBP160 million from Property Investments Chelsea Ltd.
FTSE 250-listed Grainger said the purchase price is the investment value of the properties as at the date of acquisition and represents a discount to their vacant possession value.
The Chelsea Houses portfolio, which consists of 61 freehold houses, is located across nine streets ion London's affluent Knightsbridge and Chelsea. Of the 61 houses, 45 are subject to regulated tenancies, 13 are subject to assured shorthold tenancies and three are vacant the Newcastle-headquartered property manager said.
The portfolio comprises a majority of regulated tenancies and currently generates a gross rent of GBP1.9 million a year.
Grainger said the unmodernised nature of the majority of the assets provides significant potential for value enhancement over the long term through refurbishment and modernisation of the properties, including the possibility of increasing the saleable floor space.
In addition, the company said the primary profit driver for the assets over the long term will be the "crystallisation of the capital value upon sale at vacancy."
The firm will publish its half-year results for the period ended-March on May 16.
The stock was trading at 221.20 pence Wednesday morning, up 4.70 pence or 2.3%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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