Asset management
Grainger Trust acquires German residential assets
February 2006
Grainger Trust plc, the UK's largest quoted residential property investor, has announced it has exchanged contracts to acquire three separate portfolios of mainly German residential property for a total of EUR66.4 million (£45.6 million) cash, equating to EUR907 per square metre.
The acquisition will be satisfied from existing resources although an element of new non-recourse debt may be obtained in due course.
Located primarily in the south western region of Baden-Wuerttemberg (575 units) and Berlin (411 units), the total investment includes 926 residential units and 60 commercial units covering approximately 73,180 square metres in total. The portfolio generates an annual income of EUR 4.8 million, reflecting a gross yield of approximately 7.2 per cent. The net yield after operating costs is expected to be approximately 5.7 per cent.
Rupert Dickinson, chief executive of Grainger, said: "This acquisition increases our presence in the German market and further enhances our geographic diversification. These are good quality properties and support our long-term strategy. We are getting exposure in the very dynamic region of Southern Germany and a presence in Germany's capital."
Grainger has now completed its EUR 71.5 million Preussag German residential portfolio acquisition (announced on 26th October 2005) which, together with the above acquisitions, brings its total German residential portfolio to 2,332 units.
Grainger was advised by Dr Luebke on the Baden-Wuerttemberg acquisition and by Burntan on the Berlin acquisitions
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