9th Feb 2016 08:15
LONDON (Alliance News) - Residential landlord Grainger PLC on Monday said the GRIP Unit Trust, which it owns with pension fund APG, has acquired the Kew Bridge Court property in London for GBP57.3 million.
The FTSE 250 company, which recently outlined plans to sell its non-core businesses and focus on the private rented sector, said the new property will deliver 94 flats, 4 houses and 80 car parking spaces in Kew Bridge, London. It added that it had planning consent for five additional units on the 2.2 acre site and, as improvements are delivered, Grainger said the property should generate GBP3.0 million in rent per year.
Grainger said it sees good potential for rental growth and capital appreciation in the property over the next few years, and also expects to be investing further through GRIP in the coming years. GRIP was set up in 2013 and has a private rented sector portfolio of around 1,800 units.
"Kew Bridge Court is a high quality private rented sector portfolio in a very attractive and highly sought after area of London. This portfolio demonstrates further acceleration of growth in our private rented sector 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," said Helen Gordon, Grainger's chief executive.
Grainger shares were up 0.6% at 215.00 pence on Monday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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