Investment Case

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Strategy in action:
Objective set in 2010 Action in 2011
Rebalancing residential portfolios to selectiveareas of value or growth
  • Acquisitions of high yielding HI Tricomm portfolio and the Grainger GenInvest LLPs
  • Some 62% of UK portfolio in London and the South East (54% two years ago)
  • Increase in gross rental income of 14%
Reducing capital employed in non-core assets and underperforming locations Disposal of £41m of tenanted properties in the UK and €23m in Germany to improve overall portfolio quality
Introducing third party capital to diversify returns
  • Joint venture with Moorfield to hold Sovereign Reversion assets
  • G:res life extended
  • Partnership with Defence Infrastructure organisation at Aldershot
  • Partnership with Lloyds Banking Group through G:RAMP
  • Increase in management fees of 23%
Acting early to consider and implement debt financing options.
  • Approximately £1.2bn of debt finance raised including the introduction of several new lenders and the extension of average maturities.

Comment on strategy objectives:

Grainger has three sources of income across our areas of business activity:

 
Sales
Rental
Fee
UK residential
Retirement solutions
Fund management and residential investments
Development
German residential

A key part of our strength is the resource, expertise and capability to both initiate and take advantage of opportunities in the residential environment.

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