Newcastle-based Grainger plc, the UK’s largest listed residential landlord, said it sold its 50% interest in the Walworth Investment Property (WIP) joint venture in South London to its partner Dorrington Plc for £67 million.
The WIP joint venture comprises a residential investment portfolio of 565 homes in South London — a mixture of regulated tenancies and market rented homes.
“The transaction is in line with Grainger’s stated strategy to simplify and focus the business, invest more directly on balance sheet, recycle non-core assets and deploy capital towards new private rented sector homes and build to rent schemes,” said Grainger.
“The proceeds of £67 million generate a £7 million profit before tax and legal costs and are above the market value of the investment at 31 March 2018.
“The transaction is expected to be marginally accretive to Grainger’s EPRA NNNAV.”
Grainger CEO Helen Gordon said: “Today’s transaction follows our strategic plan to simplify and focus the business, while supporting our growth in the private rented sector.
“The proceeds will be re-invested into new, purpose-built PRS homes.
“Working with Dorrington over the past several years has been a positive partnership.
“I am pleased that Dorrington will remain as the owner of the estate, having built a positive working relationship with the residents and local community.”
Duncan Salvesen, Head of Residential at Dorrington, said: “Following a mutually rewarding partnership with Grainger over the past five years we are pleased to now own 100% of this estate.
“Dorrington have a strategic commitment to the residential sector and this acquisition is a significant addition to our existing London focused portfolio.
“We are excited by this purchase and look forward to being long term custodians of this South London Victorian estate.”