Business
Acquisition of GRIP REIT plc
Acquisition of GRIP REIT plc.
About this update from Grainger Plc
[{"type":"text","content":"\n \nRNS Number : 2991H Grainger PLC 14 November 2018 \n\nTHE DISTRIBUTION OF THIS DOCUMENT IN JURISDICTIONS OTHER THAN THE UNITED KINGDOM MAY BE RESTRICTED BY LAW AND PERSONS INTO WHOSE POSSESSION THIS DOCUMENT COMES SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY RELEVANT RESTRICTIONS. IN PARTICULAR, THIS DOCUMENT MAY NOT BE PUBLISHED OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR SOUTH AFRICA.\n14 November 2018\nGrainger plc (\"Grainger\" or the \"Company\") \n \nProposed acquisition of GRIP, fully underwritten £346.7 million rights issue (the \"Rights Issue\") and Notice of General Meeting\nTransaction accelerates Grainger's growth strategy into the UK private rented sector and delivers enhanced income returns for its shareholders \nAlongside the announcement of a strong set of financial results today, Grainger, the UK's largest listed residential landlord, is pleased to announce that it has conditionally agreed to acquire the entire share capital and shareholder loans in GRIP REIT plc (\"GRIP\") from its joint venture partner, APG, for £396 million (the \"Acquisition\"). GRIP is a joint venture between Grainger and APG, currently owned 75.1% by APG and 24.9% by Grainger, which comprises 35 PRS assets (c.1,700 units) with a gross asset value of £696 million. Following the acquisition Grainger will become the 100% owner of GRIP. \nCommenting on the Transaction, Helen Gordon, Chief Executive of Grainger plc said:\n\"I am pleased to announce today the acceleration of our growth strategy in the UK private rented sector with the proposed acquisition of GRIP REIT, our £696m PRS co-investment vehicle with APG, the expansion of our PRS investment pipeline to £1.37bn, and a strong set of financial results for the year. \nThe GRIP portfolio, which we have managed since 2013 and therefore know very well, is an exceptional acquisition. It will provide a step change in our investment in the PRS market and generate increased net rental income growth, which in turn will deliver enhanced shareholder returns.\"\n\"We have a well-established strategy for growth supported by an excellent operational platform to successfully manage the enlarged PRS portfolio, ensuring that we can deliver strong returns and great homes for our customers.\nThese actions will reinforce G...