GRIP, the PRS Investment Vehicle, converts to UK REIT
19 July 2016
GRIP REIT PLC
GRIP, THE PRS INVESTMENT VEHICLE, CONVERTS TO UK REIT
Grainger plc and APG, the c.25:75 respective owners of GRIP, the private rented sector investment vehicle, have established GRIP REIT PLC, a real estate investment trust, as the new holding company for their joint venture. This will not involve any change to either party's economic interest in the related property portfolio (or the joint venture).
With a property portfolio of more than £600m of private rented sector (PRS) assets, the new status makes GRIP the UK’s largest residential REIT with an investment focus on PRS assets in London and the South East of England.
Today GRIP also announces that in addition to representatives from Grainger and APG, Sarah Slater has been appointed as a director to the GRIP REIT board. Sarah previously held senior positions at ING Real Estate Investment Management and Henderson Global Investors, and most recently she was Director of Real Estate Investments Europe at CPPIB, the Canada Pension Plan Investment Board.
The REIT regime was introduced into the UK in 2007 as a transparent, on-shore property investment vehicle, with an ambition to attract institutional investment into the UK housing market.
GRIP has more than £400m of additional investment earmarked by 2020 which would bring GRIP’s portfolio size to approximately 3,000 rental homes, worth over £1bn.
Commenting, Helen Gordon, chief executive of Grainger, said:
"Combined with GRIP’s total earmarked investment, we hope to invest more than £1.1bn* into much needed housing in the UK Private Rented Sector by 2020, creating thousands of new rental homes. Today’s announcement is a positive step forward in the evolution of the UK Private Rented Sector."
* £1.1bn includes Grainger's pledge of £850m on-balance sheet investment by 2020 as well as APG's contribution to investment via GRIP.