We grew our residential market let portfolio in recent years so that it comprised of substantial blocks of flats in larger urban areas that have strong demand for rented property. We add rental value by undertaking focused refurbishment to suit our tenants needs. Tenants have market choice so our active approach to service is essential to achieve high levels of occupancy.
At September 2006 Grainger had a market let portfolio with a total value in excess of £200million. The portfolio was moved to a Jersey Unit Trust structure in December 2005 in line with the aspiration to launch a residential fund in which our residential expertise and external investment could drive growth. We announced second closing of Gres:1 on 25th June 2007.
We continue to look at and often purchase assured shorthold tenancy portfolio which also may be part of regulated portfolios. We will only retain these for investment if we believe they are suitable for a medium and long term fund, provide a reasonable yield on vacant possession value and can be managed effectively.
