Mon, 04 Jan 2016 | DIVISION SALE
Property management company Grainger has done the paperwork for sale of its retirement services arm, in a deal tipped to be worth £325 million.
The buyer, Turbo Group Holdings, owned by Patron Capital Partners and Electra Private Equity, will be taking on Grainger Equity Release Ltd, Grainger Equity Release Management, and the division's 3,671-strong residential property portfolio, and its home reversion brand Bridgewater.
The estimated £325 million to Grainger will manifest as £175 million in cash and the transfer of £150 million of debt to the buyer, to be secured on the assets sold.
The deal is set to be completed on or before 30 May 2016.
Gross sales of £35.9 million, with profits of £6.1 million and a loss before tax of £5.4 million was posted for the year to 30 September 2015.
Grainger, established in Newcastle in 1912 to buy and manage residential property, plans to use the net funds of the sale to bring down its debt and plough some cash back in to the development of its private rented sector business.
Helen Gordon, chief executive for Grainger, said: “This is an important transaction for Grainger. It accelerates the transition to a business focused on the residential rented sector and will simplify the group.”
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