1st Feb 2007 07:01
Grainger Trust PLC01 February 2007 1 February 2007 Grainger Trust plc ("Grainger") Grainger acquires financial interest in Church equity mortgages Grainger Trust plc, the UK's largest quoted residential property owner,announces today that it has acquired a financial interest in a portfolio ofequity mortgages, granted to the Church of England Pensions Board, from theChurch Commissioners for £134.46 million. Grainger has acquired the Commissioners' rights to receive income and capitalreceipts on the mortgages, which will continue to be administered by the Churchof England Pensions Board. It follows the announcement made by theCommissioners on 4 October 2006 that they had begun detailed discussions todispose of their interest, via a competitive tender process. The transaction is in line with the Church Commissioners' aim of reducing itsexposure to UK residential property. Currently, around 1,300 retired clergy havemortgages provided by the Pension Board to assist them in purchasing retirementhousing under the Church Housing Assistance for the Retired Ministry Scheme(CHARM). The Pensions Board has written to all of the retired clergy concernedto advise them of the transaction and to reassure them that their mortgageconditions with the Pensions Board remain unchanged. Commenting, Peter Couch, Grainger's Director of Retirement Solutions, said: "This transaction provides us with a large-scale exposure to the housing marketover a period of the owners' occupation. Unlike many of our existing equityrelease assets, we also receive an index-linked annual cash return without theusual administrative costs, creating real value for our shareholders." Rupert Dickinson, Grainger's Chief Executive, added: "This acquisition is an excellent fit with the rest of Grainger's equity releaseand retirement solutions business and demonstrates Grainger's ability to sourceand deliver innovative transactions. We are delighted to be able to work withthe Church Commissioners and the Church of England Pensions Board on thistransaction." -ENDS- Enquiries: Grainger Trust:Rupert Dickinson/ Peter Couch Tel: +44 (0) 20 7795 4700 Financial Dynamics:Stephanie Highett / Dido Laurimore Tel: +44 (0) 20 7831 3113 Notes to editors: About Grainger Trust plc Grainger Trust plc ("Grainger"/"the Company") is the UK's largest quotedresidential property owner, with over 12,000 homes. The Company was establishedin Newcastle in 1912 to acquire and manage tenanted residential properties.Today, while acquiring, managing and selling these properties in the UK is themainstay of Grainger's business, the Company is increasingly active in otherareas, such as equity release, residential development and fund and assetmanagement. The Company is also expanding into residential development andinvestment in Continental Europe. Grainger operates in strict accordance with its Corporate Social Responsibilitypolicy, a copy of which is published on the company's website atwww.graingertrust.co.uk. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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