Moorfield joins Grainger in equity release JV

Earlier this month, residential property firm Grainger completed its acquisition of equity release firm Sovereign Reversions. Grainger has now formed a joint venture with MREF II Equity Release, a subsidiary of Moorfield Real Estate Fund II. The two firms will work together to manage and develop the Sovereign Reversions business.

Moorfield will pay £17.5 million for its 50% stake in the joint venture; half the price Grainger paid for Sovereign Reversions. It will also pay an additional sum to cover 50% of the associated acquisition and integration costs.

The Sovereign Reversions brand, which specialises in equity release investment, advice, plan provision and plan administration, will continue to operate normally during the acquisition process and while the joint venture is being set up.

Andrew Cunningham, chief executive of Grainger, said: “The creation of this joint venture with Moorfield is consistent with our long-established strategy of co-investing alongside partners across a range of residential sectors and of utilising third-party capital to develop and grow our business.”