Please Note: This Article is 4 years old. This increases the likelihood that some or all of it's content is now outdated.

Newcastle-based private residential landlords Grainger PLC is selling off its £42m German property portfolio to focus on its UK rental property business.

Helen Gordon, CEO Designate of Grainger plc, has now sold off almost all of its German properties as part of her new strategy of focussing on what she sees as the growing private rented sector (PRS) in the UK.

Grainger Plc plans to exit completely from its German interests following this latest £42.4m property sell-off.

The company has announced that it has signed contracts to sell most of its remaining residential German property stock to the listed Dusseldorf-based residential investment company LEG Immobilien AG.

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Helen Gordon, formerly of the Royal Bank of Scotland (RBS), is promoting a strategy of simplifying Grainger’s business to concentrate on the UK and to focus on investing in the rapidly-growing UK private rented sector.

The German portfolio sale had a book value of £45m so the sale represents a loss of 3.7m Euros which includes professional fees, and will be treated in the company’s accounts as a one-off or non-recurring item.

The German portfolio consisted of around 1,100 residential units in the North Rhine-Westphalia region, generating a rental income of approximately £3m, and which represented a pre-tax loss of £2.7m in the last financial year.

This sale and the company’s previous disposals will result in a balance of around £8.8m of property left in Germany if the sale is approved by the German Federal Cartel Office. This remainder is also up for sale.

The total disposal of its German property assets will be around £179.4m over the last 12 months and overall the company expects to make a small profit after its withdrawal from Germany.

Helen Gordon, Grainger’s new chief executive has said:
“We are pleased to be concluding our divestment programme in Germany, enabling Grainger to focus its full attention on its stated strategy of investing in the UK private rented sector.”
 
Grainger intends to take advantage of government incentives for investing in rental property in Britain.

Britain’s biggest residential landlord sells German Portfolio

Newcastle-based private residential landlords Grainger PLC is selling off its £42m German property portfolio to focus on its UK rental property business.

Helen Gordon, CEO Designate of Grainger plc, has now sold off almost all of its German properties as part of her new strategy of focussing on what she sees as the growing private rented sector (PRS) in the UK.

Grainger Plc plan to exit completely from its German interests following this latest £42.4m property sell-off.

The company has announced that it has signed contracts to sell most of its remaining residential German property stock to the listed Dusseldorf based residential investment company LEG Immobilien AG.

Helen Gordon, formerly of the Royal Bank of Scotland (RBS), is promoting a strategy of simplifying Grainger’s business to concentrate on the UK and to focus on investing in the rapidly-growing UK private rented sector.

The German portfolio sale had a book value of £45m so the sale represents a loss of 3.7m Euros which includes professional fees, and will be treated in the company’s accounts as a one-off or non-recurring item.

The German portfolio consisted of around 1,100 residential units in the North Rhine-Westphalia region, generating a rental income of approximately £3m, and which represented a pre-tax loss of £2.7m in the last financial year.

This sale and the company’s previous disposals will result in a balance of around £8.8m of property left in Germany, if the sale is approved by the German Federal Cartel Office. This remainder is also up for sale.

The total disposal of its German property assets will be around £179.4m over the last 12 months and overall the company expects to make a small profit after its withdrawal from Germany.

Helen Gordon, Grainger’s new chief executive has said:
“We are pleased to be concluding our divestment programme in Germany, enabling Grainger to focus its full attention on its stated strategy of investing in the UK private rented sector.”

Grainger intends to take advantage of government incentives for investing in rental property in Britain.

Please Note: This Article is 4 years old. This increases the likelihood that some or all of it's content is now outdated.

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