Residential property owner and manager Grainger has sold its interest in a portfolio of 1,203 assets located across the UK to Irish group Clifden Holdings.
Residential property owner and manager Grainger has sold its interest in a portfolio of 1,203 assets located across the UK to Irish group Clifden Holdings.
The assets were sold for £87.6 mln (€106 mln). They are held by Equity Release Increments Limited, a wholly owned subsidiary of Grainger's retirement solutions business.
All the properties are residential units owned through home reversion plans, the majority of which were originated between 2004 and 2008.
Clifden paid 60% of the total consideration, or £52.6 mln, in cash. The remaining 40% is payable over the coming 12 months. Grainger booked a pre-tax profit (after costs) of £9.9 mln on the sale.
Grainger said the proceeds from the sale will provide additional headroom for future investments. Following this transaction, Grainger's retirement solutions business comprises around 3,800 assets with a market value of £345 mln.
As part of the transaction, Grainger will enter into a long-term agreement with Clifden to carry out asset and property management of the portfolio.
Grainger was advised on the deal by Greenhill & Co. International LLP.
Commenting on the deal, Andrew Cunningham, CEO of Grainger, said: ‘This is a significant transaction for Grainger, crystallising substantial value from part of our Retirement Solutions portfolio while retaining long-term fee income. The sale, which is aligned to our current strategy, demonstrates the growing appetite among investors for assets in all segments of the residential property sector.’