4th Oct 2006 10:49
Grainger Trust PLC04 October 2006 GRAINGER TRUST plc: TRADING UPDATE Grainger Trust plc ("Grainger" or "the Company") the UK's largest quotedresidential property owner, today announces continued strong trading volumes. Grainger is providing this trading update in advance of its preliminary resultsfor the year ended 30 September 2006 to be issued on 28 November 2006. During the second half we have seen a notable strengthening of the residentialmarket in London and the South East which accounts for 60% by value ofGrainger's UK tenanted residential portfolio. We anticipate that the overallincrease in the vacant possession value of our portfolio will be in the regionof 9% for the year. Core tenanted residential sales have continued to exceed our September 2005valuations and total sales volumes are expected to be approximately £137m forthe 12 months to 30 September 2006 (2005: £133m). During the second half of the year, Grainger completed or exchanged contractsfor the purchase of approximately £54m of tenanted residential properties takingthe total acquisitions made during the year to approximately £97m at investmentvalue and including our share of joint venture acquisitions, this figureincreases to £195m (2005: £184m including £91m acquisitions in City NorthGroup). At 30 September 2005, we valued our regulated portfolio at 73% of vacantpossession value. Due to sustained strong market and transaction activity wenow consider this to be very conservative. Our valuers are reviewing theposition and have indicated that there is likely to be a significant improvementin this aspect of the valuation at 30 September 2006. Activity in our equity release division has continued in line with expectationsexpressed at our interim results. Highlights in the second half includedBridgewater, our own equity release business, collecting the 'Awards forInnovation' at the coveted Investment, Life and Pensions Award 2006. Industryfigures (SHIP) reveal that our overall market share of the UK's home reversionmarket has grown to 38%. The development division has also performed in line with expectations and, asreported in July, has entered into a £70m multi site mixed use partnership withthe London Borough of Islington and The Guinness Trust for three sites inHornsey, Downham Road and Barnsbury. In addition, we have been selected aspreferred developer by two local authorities; West Berkshire Council and NetworkRail for a mixed use gateway development around Newbury train station and theLondon Borough of Haringey for a mixed use development adjacent to Seven SistersLondon Underground station. We have continued to be active in Germany and, since the half year, havecompleted the acquisition of a further 513 units, bringing our total portfolioto 2,807 units, with several other acquisition opportunities in the pipeline. The Company will comment in more detail on its progress at the time of itspreliminary results announcement. Ends Contact: Grainger Trust plcRupert Dickinson, Chief Executive Tel: 020 7795 4700Andrew Cunningham, Deputy Chief Executive Tel: 0191 261 1819& Finance Director Financial DynamicsDido Laurimore/Stephanie Highett Tel: 020 7831 3113 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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