Please find below a joint statement from Grainger plc and Genesis Housing Group, followed by the regulatory anouncement to the London Stock Exchange from Grainger plc, both regarding Grainger GenInvest Partnerships.
Joint statement from Grainger plc and Genesis Housing Group
On Monday, 21 March 2011, Genesis Housing Group (Genesis) sold its share of Grainger GenInvest LLP to Grainger plc (Grainger). This makes Grainger the sole owner.
Following a strategic review, Genesis is focusing on its core portfolio to allow reinvestment in other parts of the Genesis business such as building more affordable homes as well as continuing to invest in refurbishment and maintenance of existing properties.
Over the past five years Genesis and Grainger have done a considerable amount for residents of Grainger GenInvest, including refurbishment work on properties and supported the development of three thriving resident associations.
Residents are a most important consideration for both Genesis and Grainger. It is important to both parties that the residents and communities of Grainger GenInvest continue to receive the same high level of commitment and attention that they have always had. By retaining an interest in the portfolio, Grainger will ensure that this level of commitment continues.
Grainger will continue with the re-investment programme and will ensure that the estates continue to be attractive places to live. In addition, rents, tenancies, repairs and renewals, for instance, will continue to be handled as they are at present. To ensure a smooth handover, Pathmeads (part of Genesis Housing Group), the property management provider for Grainger GenInvest for the last five years, will continue to manage the portfolio for at least a further six months.
Grainger believes in the importance of resident involvement and engagement to create a thriving community and will therefore continue supporting Resident Associations and hold open clear channels of communication with residents.
For those Assured Shorthold tenancies and Assured tenancies granted previously by the Church Commissioners:
- Rents will continue to be based on Rent Officer determinations and will reflect the Government's affordable rent policy; and
- Consideration will continue to be given to transfers to suitable properties for tenants with issues of overcrowding, under-occupation and medical concerns.
Genesis and Grainger will ensure that residents are kept up to date with any developments that may occur. If residents have any further questions, they should contact their existing property manager.
- Ends -
--GRAINGER PLC RNS ANNOUNCEMENT--
Grainger acquires Genesis Housing Group's share in Grainger GenInvest Partnerships
Grainger plc, the UK's largest quoted residential property company, today announces that it has acquired Genesis Housing Group's(Genesis) 50% share in Grainger GenInvest Partnerships* (Grainger GenInvest) along with associated subordinated loan notes for a total consideration of £15m, financed out of existing Company resources. The transaction will make Grainger the sole owner of the portfolio. On completion of the transaction, the Grainger GenInvest Partnerships secured new debt facilities of £120m from HSBC and Santander which enabled existing lenders to exit.
Grainger GenInvest was created in June 2005 between Grainger and Genesis, each owning 50% of the joint venture, and now consists of eight high quality residential blocks in central London, consisting of 1630 units of which 470 are regulated tenancies and 301 are assured tenancies. The portfolio is consistent with Grainger's focus on high quality reversionary assets in areas offering prospects of capital growth. The assets also currently generate a gross rent roll of approximately £12m. The current market value of the underlying assets is approximately £285m.
This significant acquisition helps deliver Grainger's strategic objective to acquire portfolios of residential assets delivering good long-term returns. Furthermore, the sourcing of new debt specific to the transaction from banks who have not previously lent to the group provides Grainger with a further opportunity to diversify its sources and type of Company financing.
Commenting on the transaction, Andrew Cunningham, Grainger's Chief Executive said;
"This is a fantastic, high quality portfolio, and a rare opportunity to acquire over 1500 units the majority of which are within four miles of Westminster. It is a natural and positive step for Grainger to acquire the remaining 50% of this joint venture, which Grainger is familiar with and firmly committed to. It will allow us to ensure that residents continue to receive the same high level of service and commitment that they have come to expect.
"This transaction is consistent with our strategy to acquire high quality portfolios of residential assets which deliver good long-term returns. The fact that we already know the portfolio in-depth made this even more appealing."
For further information, please contact:
Grainger plc
Nick Jopling / Dave Butler / Kurt Mueller
Tel: +4402077954700
Tel: +4401912611819
Financial Dynamics
Dido Laurimore/Stephanie Highett
Will Henderson
Tel: +4402078313113
Notes to Editors
Grainger plc is the largest residential property owner and manager traded on the London Stock Exchange. Our business activities in the UK and Germany cover ownership, trading, fund management, property management and development of residential property. Grainger is also a leading provider of retirement housing solutions, including home reversion products through Bridgewater Equity Release. We have approximately £2.1bn of wholly-owned property assets and £2.8bn of assets under management.
*Grainger GenInvest Partnerships comprises Grainger GenInvest LLP and Grainger GenInvest No.2 (2006) LLP.