5th Feb 2016 07:35
LONDON (Alliance News) - Residential landlord Grainger PLC on Friday said it has agreed to sell its German residential portfolio and its German business platform to real estate investment manager Heitman LLC for EUR124 million.
Grainger said it had sold its FRM German residential portfolio and its German business platform Grainger Deutschland GmbH to Heitman to release capital to support its UK private rented sector growth, as well as to deliver on its objective of simplifying its business.
Completion of the deal is expected by February 29, subject to approval by German Federal Cartel Office. Grainger said the impact on net asset value will be marginal.
The transaction follows the sale of Grainger's 25% stake held in its German joint venture with Heitman at the end of the 2015, which generated a pretax profit of EUR16 million.
Grainger said the sale of its remaining German assets is underway.
"Following the successful sale of our previous joint venture with Heitman at the end of the year, today's sale takes us one step closer to our stated aim of exiting our German business in order to focus on the UK private rented sector," said Chief Executive Helen Gordon.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Grainger plc