28th Jan 2016 07:58
LONDON (Alliance News) - Residential landlord Grainger PLC on Thursday outlined plans to restructure the business to focus on the private rented sector and regulated tenancies, with non-core operations to be sold off.
The FTSE 250-listed group said it will sell its Retirement Solutions equity release business and the rest of its business in Germany, a move which will cut its annual overheads by around 10%. This also will simplify the structure of the business, Grainger said, adding it will provide more details on these plans when it publishes its interim results in May.
The group will exit non-core development assets and will prioritise direct investments rather than fee generation.
Grainger will now concentrate its resources on the private rented sector and regulated tenancies, with GBP850.0 million to be invested in private rented sector assets through to 2020 in a push to increase rental income and back a progressive dividend policy.
"It is clear that swift and decisive action is required to capitalise on the compelling PRS market opportunity and to enable Grainger to realise its potential of being the UK's leading private landlord. We will transition to one highly focused business that will deliver improved and sustainable, rental asset led shareholder returns," said Chief Executive Helen Gordon.
By Sam Unsted; [email protected]; @SamUAtAlliance
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