UK listed residential company Grainger has formed a 50:50 joint venture with real estate investor Dorrington to acquire a portfolio of South London homes.
UK listed residential company Grainger has formed a 50:50 joint venture with real estate investor Dorrington to acquire a portfolio of South London homes.
The portfolio was previously owned by Grainger and is being bought by the joint venture for £111 mln (€131 mln).
The portfolio comprises 598 residential units and two commercial units, and produces a gross rental income of approximately £6 mln per annum, reflecting a gross yield of 5.3%.
The transaction crystallises a return of 36% on Grainger’s equity investment over the two-year period since it took full ownership of the portfolio in March 2011, and will also reduce group debt.
The joint venture has arranged a non-recourse debt facility of £60 mln.
