Grainger completes Sovereign Reversions acquisition

Grainger, the UK’s largest quoted residential property owner, has completed its acquisition of equity release firm Sovereign Reversions at a cost of £34.6 million.

Having agreed in principal to take over the company in May, Grainger confirmed the sale has now gone ahead and that it has acquired the AIM-listed business for 202p per share.

Grainger is now in discussions with Moorfield, a UK-based property investor and fund manager, with a view to establishing a joint venture. It hopes Moorfield will become a funding partner.

In other news, the company said its total residential sales had increased by £49.4 million during the four months to July 31, taking the company’s ten-month total to £128.4 million.

Chief executive at Grainger, Andrew Cunningham, said: “We are trading well despite price growth in the general housing market slowing in the last few months, reflecting the economic uncertainty.  We have also taken advantage of market conditions to make well-priced acquisitions which we anticipate will produce good levels of returns for our investors in the future.”