26th Oct 2005 07:00
Grainger Trust PLC26 October 2005 FOR IMMEDIATE RELEASE26th October 2005 GRAINGER TRUST plc: ACQUISITION OF €71.5M GERMAN RESIDENTIAL INVESTMENT PORTFOLIO Grainger Trust plc ("Grainger"), the UK's largest quoted residential propertyinvestor, today announces it has exchanged contracts to acquire a largelyresidential property investment portfolio from Preussag Immobilien GmbH ("PSI")for €71.5m (£48.9m) cash. The acquisition will be satisfied from existingresources together with an element of new debt. Located in the Metro Ruhr area of Germany, mainly in the cities ofRecklinghausen, Hamm and Herne, the portfolio comprises 1,406 homes, of which192 are houses and the remainder apartments, and six commercial units coveringapproximately 95,000 sq m in total (more than 1m sq ft). The portfolio generatesannual income of €4.5m, reflecting a running yield of approximately 6.3%. Completion is anticipated by 31st December 2005 and is subject to approval fromWfa, the state lending institution which provides subsidised loans for socialhousing development. Approval will enable Grainger to assume the current lowcost debt on part of the portfolio. Rupert Dickinson, Chief Executive of Grainger, said: "This is an opportunity toacquire high quality assets. It is also an important step forward in achievingour European strategy and the portfolio provides us with a strong platform inGermany from which we can grow." Under the terms of the acquisition Grainger will take on four employees from PSIwho will manage the portfolio from a base in Recklinghausen. The portfolio sale represents part of PSI's owner, TUI AG, refocusing on travel,leisure and shipping and its decision to sell its real estate activities. Hans-Peter Rietze, Managing Director of PSI, commented: "We are pleased to beable to sell this portfolio to Grainger as this completes the divestment of ourGerman residential real estate assets. Grainger is a long-term investor withextensive experience in the tenanted residential sector and we believe it is theright owner of these assets." Grainger was advised by Dr Luebke (acquisition) and CB Richard Ellis(valuation). Ends.Contact: Rupert Dickinson, Chief Executive, Grainger. Tel: 020 7795 4700Baron Phillips, Baron Phillips Associates. Tel: 020 7920 3161 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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