Grainger secures two-year extension on resi fund

Grainger, the UK's largest quoted residential property owner, said that investors in its G:res1 Fund have voted to extend its maturity date by two years until October 2013.

Following that date there will be a further two-year liquidation period to 2015 to allow for the 'orderly disposal' of the fund’s assets to generate maximum returns for investors, the company said. The extension will allow Grainger to extract maximum value from the assets and crystallise as much vacant possession value from the portfolio as possible.

Launched in November 2006, Grainger both advises and is the largest investor in the G:res1 Fund with a 22% stake. G:res is a close-ended fund which was established for a period of five years (to 2011), with 2x1 year extension options (2013), and a liquidation period which now brings the fund’s life out to 2015.

The fund currently has 12 investors. At end-March 2011 it owned 2,056 units with a gross asset value of £375 mln (EUR 417 mln) excluding cash, vacant possession value of £415m and a net asset value of £151 mln. Around 93% of the assets in value terms are located in London and the South East.