Grainger raises £187m in share placing

Grainger CEO Helen Gordon

Newcastle-based Grainger plc, the UK’s largest listed residential landlord, said on Thursday it placed 61.2 million new ordinary shares in Grainger via J.P. Morgan Cazenove and Numis to raise gross proceeds of £186.7 million.

Grainger CEO Helen Gordon said: “We are delighted with the successful outcome of this fundraise which demonstrates the strong support from our shareholders for our ongoing investment in the private rented sector (PRS).

“This transaction accelerates our PRS growth strategy in London and the regions, and brings forward £246 million of new acquisitions into the secured pipeline, bringing it to c.£1 billion.

“On completion of the new developments our rental income will grow substantially and this will allow us to further enhance total shareholder returns.

“We look forward to continuing to deliver quality rental homes in the UK.”

Grainger said in a statement: “Placing shares have been issued at a price of 305.0 pence per placing share.

“The placing shares being issued represent, in aggregate, approximately 9.99 per cent. of Grainger’s issued ordinary share capital prior to the placing. 

“The placing price represents a discount of 2.31 per cent. to the closing price on 12 February 2020 of 312.2 pence and a discount of 1.61 per cent. to the intra-day price of 310.0 pence at 11.01 a.m. (being the time the placing price was agreed) …”