4th Dec 2008 15:05
4 December 2008
Grainger plc
("Grainger" or the "Company")
GRAINGER COMPLETES SALE OF BARNSBURY DEVELOPMENT SITE, NORTH LONDON
Grainger plc, the UK's largest listed residential property owner, today announces that it has completed the sale of its Barnsbury development site in North London to Mount Anvil (Barnsbury) Limited a wholly owned subsidiary of Mount Anvil Group Limited for a total cash consideration of £19m.
On completion, the Barnsbury development will comprise 95 apartments, of which 80 will be developed within an existing Victorian school building, along with nine townhouses.
The sale contract provides for the payment of overage in the event that agreed revenue targets are achieved.
The contract also includes a put option in favour of the bank funding the transaction. Under this agreement, if the lending bank takes possession of any completed but unsold units, it may require Grainger to purchase those units. In the unlikely event that this option is exercised, the agreed level of pricing anticipates that a rental yield of about 6% would be achievable.
Commenting, Rupert Dickinson, Chief Executive of Grainger, said:
"Completing the sale of the Barnsbury site in this difficult market is encouraging. It reflects continued efforts towards both our stated aim of cash generation through ongoing sales activity, and also our strategy of scaling down our development exposure whilst market conditions remain turbulent."
For further information:
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Grainger plc |
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Rupert Dickinson/Andrew Cunningham |
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Tel: +44 (0) 20 7795 4700 |
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Financial Dynamics |
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Stephanie Highett/Dido Laurimore/Jamie Robertson |
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Tel: +44 (0) 20 7831 3113 |
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