UK listed residential property firm Grainger has agreed terms with an affiliate of the Lone Star Funds for the sale of Grainger’s interest in New Sovereign Reversions for £18.5 mln (€25 mln) in cash.
UK listed residential property firm Grainger has agreed terms with an affiliate of the Lone Star Funds for the sale of Grainger’s interest in New Sovereign Reversions for £18.5 mln (€25 mln) in cash.
Newcastle-based Grainger said it has agreed to sell its 50% stake in the portfolio, a joint venture with Moorfield Real Estate Fund II, to an affiliate of the private equity group.
The acquisition price represents a pre-tax profit of £4.5 mln and post-tax profit of £3.6 mln, the vendor said in a statement.
As at end-March, the Sovereign portfolio comprised 767 properties primarily subject to home reversion plans, located throughout the UK.
The transaction is expected to complete by May 29.
Andrew Cunningham, chief executive of Grainger, said: 'We are pleased to announce today’s sale, which was a compelling opportunity to realise an attractive return on our investment and support our JV partner’s wider strategic activity.'
