Grainger : GRIP Portfolio Debt Refinancing

19 July 2019

Grainger plc

('Grainger')

Grainger refinances £275m of debt, finalising integration of GRIP PRS portfolio

Grainger plc, the UK's largest listed residential landlord, today announces that it has successfully agreed a refinancing with Rothesay Life for its GRIP portfolio. The new facility has been agreed ahead of the 2020 maturity date for the previous GRIP facility and at the earliest opportunity without incurring repayment fees. The new facility consists of two tranche tenors, a £75m tranche for seven years and a £200m tranche for ten years, with a blended interest rate of 2.3%, compared to a previous rate of 3.2%.

Grainger acquired the full interest in GRIP, a c. £700m PRS portfolio of c.1,700 occupied private rental homes, in December 2018 from its JV partner, APG. At the time the company said that it would seek to refinance the debt on the portfolio to secure terms on a longer-term basis and at a lower rate, which it has now achieved.

Today's refinancing marks the final stage of integration of the GRIP portfolio, following the successful restructuring of the vehicle, delivering operational improvements including an immediate improvement in operating costs ('gross to net') from 32% to 26%, achieving overheads savings of £4m and continuing to add value to the portfolio through our refurbishment programme and PRS development schemes.

Grainger's operational PRS portfolio now consists of over 8,600 occupied private rental homes, and its pipeline will deliver an additional c.8,000 new rental homes once complete.

Helen Gordon, Chief Executive at Grainger plc, said:

'We are pleased to secure this new financing from Rothesay Life at attractive long-term rates, which is an endorsement of the quality of the GRIP portfolio. This deal supports Grainger's ambition to grow as the UK's leading residential landlord, with a strong balance sheet and financing that matches the long-term, low-risk nature of private rental assets.'

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For further information, please contact:
Grainger plc	Camarco
Kurt Mueller	Ginny Pulbrook / Geoffrey Pelham Lane / Tom Huddart
Telephone: [phone]	Telephone: [phone] / 4985