Dec

Grainger books increased profits from investment and rental growth

admin

Build-to-Rent:

One of Britain’s
biggest residential landlords Grainger boosted its profit for the 12
months ended 30 September 2019, with a 30% increase over the previous
12 month period. It’s rent roll income increased by 45% to £63.5m.

A large chunk of
this growth can be attributed to the acquisition of a large of homes
following Graingers’s taking full control of a property joint
venture by acquiring the 75.1% stake it did not already own from APG
for £396m (€454.6m). The GRIP portfolio contributed £17.7m, and
delivered 1,152 new private rented sector (PRS) homes.

Grainger said it
planned to invest more into the new home private rented sector (PRS)
when it took over the entire share capital in the GRIP REIT from the
Dutch asset manager. GRIP’s portfolio comprises 1,700 PRS units
with a gross asset value of £696m and a PRS pipeline of £382m.

Grainger was
established by the Dickinson family in 1912 as the Grainger Trust
acquiring tenanted residential properties in Newcastle upon Tyne. In
the 1970s and 1980s it acquired large residential estates from
British Coal, British Rail and Reckitt & Coleman. It was first
listed on the London Stock Exchange in 1983. In 1989 it acquired
Channel Hotels & Properties and in 2003 it acquired Bradford
Property Trust.

Grainger went
through a major change of strategy when Helen Gordon was appointed
Chief Executive in January 2016 from RBS where she had been Global
Head of Real Estate Asset Management since October 2011. A large
portfolio of controlled tenancy homes and German residential assets
were disposed of, switching focus to the UK, in the PRS letting
market and build-to-rent.

More than 1,000 PRS
homes are expected to come on stream next year with a pipeline of
over 9,000 homes in partnership with Transport for London. Grainger
says its recurring rental income has the potential to more than
double as it continues its development with its 75% residential
portfolio.

Chief financial
officer Vanessa Simms has said:

“The continued
structural growth story with continuing undersupply of rental homes
compared to demand, provides a strong positive outlook for
sustainable rental growth for years to come.

“Our portfolio
of attractive rental homes in high demand locations, our strong
operational capability and fully integrated business model places us
in an excellent position to continue building on our leadership in
the UK residential rental market.”

View Full Article: Grainger books increased profits from investment and rental growth