2nd Feb 2015 07:38
LONDON (Alliance News) - Grainger PLC Monday said it has exchanged contracts to buy a regional tenanted residential property portfolio for about GBP58 million from Sarunas Properties Ltd, a deal that will take its total investment into residential assets in the UK regions to about GBP76 million over recent months.
The residential property owner and manager said the portfolio comprises 614 residential properties, which are predominantly tenanted and subject to Assured Shorthold Tenancies, located in Cambridgeshire, Greater Manchester, Lancashire, Cheshire, Derbyshire, Merseyside and Nottinghamshire, as well as a small proportion of properties in Scotland.
In a statement, it said the price it is paying represents a discount to their vacant possession value of about GBP66 million. The portfolio presently generates an annual gross rent of about GBP4.5 million.
"It provides significant opportunities for value enhancement through a combination of refurbishment, active asset management and capital realisation, and is anticipated to deliver a double digit total return over the next five years," Grainger said.
"The remainder of the company's investment over the past few months has comprised smaller portfolio acquisitions across the UK, in line with Grainger's normal investment strategy. In total the recent acquisitions in the UK regions of circa GBP76 million will generate nearly GBP6 million of additional gross rent for the company annually," it added.
By Steve McGrath; [email protected]; @stevemcgrath1
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