Grainger nears German withdrawal after agreeing portfolio sale

13th Apr 2016 07:53

(ShareCast News) - Residential landlord Grainger has agreed to offload the majority of its remaining German properties for a cut-price €53m (£42.4m) as it looks to focus solely on the UK private sector.As the German portfolio had been valued at €56.3m, the FTSE 250 group will be hit with a loss on the transaction of roughly €3.7m, includes fees, which will be treated as a non-recurring item in its results.Grainger suffered a £2.7m loss on the 1,100 or so German apartments in the last financial year, from a gross rental income of roughly £3m.The sale will need regulatory approval by the German Federal Cartel Office, which is expected in the coming months.Once the transaction completes, Grainger will have less than €11m of remaining assets in Germany, more than half of which are already under offer for sale.Grainger has sold the bulk of its German business interests for a total close to €225m and overall management expect to achieve a "modest profit" from the German exit.Chief executive Helen Gordon said: "We are pleased to be concluding our divestment programme in Germany, enabling Grainger to focus its full attention on its stated strategy of investing in the UK private rented sector."