Grainger up on a south east boost
GRAINGER, the UK’s largest residential landlord, posted an 8.2 per cent rise in full year net asset value and remained confident in its outlook for the UK residential market as it focuses on London and the south east.
Gross net asset value per share at the company grew to 216p at the end of September up from 200p a year before.
The company, led by chief executive Andrew Cunningham, swung back into the black in the year, reporting a pre-tax profit of £26.1m compared with a loss of £20.8m the year earlier.
Grainger owns residential property worth £2.4bn – 82 per cent in the UK and the rest in Germany – which generated £86m in rents and asset sales of £223m during the year.
The rise in rental income was boosted by its two acquisitions during the year including a portfolio of 317 properties, developed for the Ministry of Defence for £18.5m in February.
Grainger has 62 per cent of its properties in London and the south east, helping it to benefit from high property prices compared to other parts of the UK.
It has secured new borrowings of £1.2bn this year, taking the average maturity of its debt to just under six years.
“We brought in five new lenders during course of the year, which to us shows confidence in the business from the lending market,” Cunningham said.