28th Aug 2007 07:02
Grainger PLC28 August 2007 28 August 2007 Grainger plc ("Grainger"/the "Company") GRAINGER SUCCESSFULLY CONCLUDES FUNDRAISING FOR G:RES1 FUND - attracts TOTAL THIRD PARTY EQUITY OF £159 MILLION Mitsubishi Corporation acquires a £15 million stake Grainger plc, the UK's largest quoted residential property owner, todayannounces that it has concluded its highly successful capital raising activityfor G:res ("the Fund"), the UK's largest market-rented residential investmentfund, which it advises and manages. In concluding its current fundraising activity, the Company has sold £15 millionof units in the Fund to Mitsubishi Corporation, a transaction that takes thetotal third party investment in G:res to £159 million and which reducesGrainger's equity stake to £43 million or 21.63%. G:res1 first launched on 22 November 2006 with a seed portfolio of 1,400properties. Following the acquisition in March 2007 of the 700-unit Abilityportfolio, which is predominately located in East London, the Fund now has circa2,100 units, 90% of which are located in London and the South East. Following the Fund's semi-annual revaluation at the end of June, the propertyinvestment value stands at £435 million, equating to a Net Asset Value ("NAV")of £227.7 million or a share value of 114p. Since launch in November 2006 theFund NAV has grown by 14%. Mitsubishi Corporation is the latest in a line of prestigious third partyinvestors to commit equity to G:res1. Other investors include Achmea, APPI,British Airways Pensions Fund, FF&P, LGPI, Nomura, Norsk Hydro, Storebrand,Swiss Re and the Universities Superannuation Scheme. Commenting on the growth of the Fund's investor base, Rupert Dickinson, ChiefExecutive of Grainger, said: "We are delighted with the support of our new and existing investors. Whilst thecapital markets are challenging, for commercial property in particular, wecontinue to be encouraged by the support and recognition of respected investorsabout the long-term attractions of Grainger's management ability in theresidential sector. "We are pleased to see the Fund perform so well, as we continue to integrate theAbility portfolio acquisition into the Fund. This will provide a good platformfrom which to generate long-term performance growth for Fund investors togetherwith additional opportunities to deliver value for the shareholders of Graingerthrough increasing management and performance fees." Quinton Hill-Lines, Grainger's Managing Director of Fund Management, added: "Having come very close to our strategic hold level of 20% we are very happy todraw this capital raising process to a successful close. However, we arecurrently looking at a number of interesting acquisition opportunities for theFund which may result in a further capital raising process in the latter part ofthis year or the early part of next." END For further information: Grainger plc: Tel: +44 (0) 20 7795 4700Rupert DickinsonQuinton Hill-Lines Financial Dynamics: Tel: +44 (0) 20 7831 3113Stephanie HighettDido LaurimoreJamie Robertson Notes to Editors: Grainger plc is the UK's largest listed residential property owner, trader anddevelopment company. Listed on the FTSE-250, the Company aims to delivershareholder value through combining its core activities in the management andtrading of portfolios of regulated and assured tenancies and in the fields ofresidential development, fund management, equity release and asset management.In addition, Grainger is expanding its operations into continental Europe andcurrently owns over 4,000 residential units in Germany, which are managed from alocal office in Mannheim. M3 Capital Partners Limited acted and continues to act as adviser to Graingerwith respect to the structuring and placement of the Fund. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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