Business
Strategy Update
Strategy Update.
About this update from Grainger Plc
[{"type":"text","content":"\n \nRNS Number : 2344N Grainger PLC 28 January 2016 \n\n28 January 2016\n \nGrainger plc\n \nStrategy Update\n \n \nHelen Gordon, CEO of Grainger plc, the UK's largest listed residential landlord, today announces a strategy update, commenting:\n \n\"Since joining Grainger on 3rd November I have worked closely with our team, undertaking a deep review of every aspect of the business. I have been hugely impressed with the unrivalled knowledge and expertise our people have and the platform that has been developed. Our high quality regulated tenancy portfolio provides an excellent foundation from which we can grow our offering of private rented sector (\"PRS\") homes. \n \n\"However, it is clear that swift and decisive action is required to capitalise on the compelling PRS market opportunity and to enable Grainger to realise its potential of being the UK's leading private landlord. We will transition to one highly focused business that will deliver improved and sustainable, rental asset led shareholder returns.\"\n \nThere are three key themes around which action will be taken:\n \nGrow rents\n \n▪ Inject pace and accelerate the acquisition of existing and newly built rental homes; \n▪ Re-allocate development team resources to deliver new PRS stock; \n▪ Refocus the acquisitions team to improve access and conversion of PRS opportunities.\n \nSimplify and focus\n \n▪ Divest of two divisions: Retirement Solutions (Equity Release) and Germany;\no Post-disposals, overheads will reduce by c.10%;\n▪ Reduce overheads by transitioning to a simpler, streamlined structure;\no Operational review underway, report back at HY results in May;\n▪ Exit non-core development assets;\n▪ Prioritise direct investment, with no new funds, and no more focus on fee generation;\n▪ Reduce our cost of financing; targeting 4% cost of debt;\n▪ Concentrate resources on two core assets: regulated tenancies and PRS.\n \nBuild on our heritage\n \n▪ Continued commitment to our high quality, regulated tenancy portfolio which delivers excellen...