Member profile

Grainger plc

Grainger plc is the largest quoted residential landlord in the UK with over 14,000 homes and a further 3,000 homes in Germany.  They have total property assets of approximately £2.2bn. While acquiring, managing and selling these properties is the mainstay of the Company's business, it is increasingly active in other areas such as equity release, regeneration, residential development and asset management. Grainger is also expanding into residential development and investment in Germany and the newly enlarged EU.

Grainger's portfolio covers all types of residential property and tenure, with the core portfolio comprising properties that are let on regulated tenancies. These are bought at less than the vacant-possession value to reflect the low yield and the fact that the tenant has lifetime rights of occupation. They are generally sold into the owner-occupier market once the tenant leaves. Other properties include equity release (home reversion) properties and those let on market tenancies. These are either held directly or in funds in which Grainger is asset manager and co-investor, such as G:res1 (Grainger's Jersey Property Unit Trust), Schroder Residential Property Unit Trust (ResPUT) and the ex-Church Commissioners' portfolio which is held jointly with Genesis Housing Group. On the development side Grainger is concentrating on large and complex mixed use projects and currently has an expanding development pipeline with the potential to deliver approximately 7,000 residential units.

One of Grainger's key strengths is its ability to manage residential property on a large scale, with staff across 7 offices trained to understand all types of property and tenure.

Market capitalisation

The market value of Grainger's gross assets and investments totals £2.2bn.
Grainger's market cap is approximately £838m.

Property portfolio

Analysis of UK residential portfolio at time of Interim Results, 7th June 2007 (no revaluation undertaken at 31 March 2007).

Grainger portfolio:	No. of properties	Vacant possession value £m	Investment value £m
Regulated Tenancies	7,698	1,407	1093
Assured Tenancies	320	52	46
Vacant Properties	246	45	41
Equity Release Properties	5,519	715	467
Other (Ground rents, reversions etc)	50	56	45
G:res1 (Grainger’s Jersey Property Unit Trust)	2,100	471	435
Total at 31 March 2007	15,933	2,746	2,127

Other interests:	Properties under management	Grainger share of gross assets £m
Schroders Residential Property Unit Trust (ResPUT)	596	21
Grainger GenInvest (1 & 2)	1640	133
Other landlords	357	Nil
Total at 31 March 2007	2,593
Total properties under management	18,526

Plans to launch a REIT?

Under current legislation Grainger’s trading properties will not benefit from the 2% conversion charge so it is unlikely that Grainger will convert to a REIT. We do see opportunities in the sector for Grainger to be involved as a promoter and asset manager of market let residential REITS.

Reason for joining The REITs and Quoted Property Group

Grainger is a listed residential property trader and investor and see this group as being representative of listed property generally. Whilst we have decided not to become a REIT on 1 January 2007, we believe that retail investors would be interested in accessing, through IFAs and private investor brokers, alternative property investments and Grainger in particular as a specialist residential property investment opportunity.

Find out more

Further information about Grainger can be found at www.graingerplc.co.uk

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