Grainger sells stake in Walworth JV for £67m

FTSE 250 residential landlord Grainger has sold its 50% interest in the Walworth Investment Property (WIP) joint venture to its partner, Dorrington, for £67m.

The proceeds generate a £7m profit before tax and legal costs and are above the market value of the investment at the end of March.

The deal, which is in line with the company's strategy to invest more directly on balance sheet and deploy capital towards new private rented sector homes, is expected to be marginally accretive to Grainger's triple net asset value.

Chief executive Helen Gordon said: "Today's transaction follows our strategic plan to simplify and focus the business, while supporting our growth in the private rented sector. The proceeds will be re-invested into new, purpose-built PRS homes.

"Working with Dorrington over the past several years has been a positive partnership. I am pleased that Dorrington will remain as the owner of the estate, having built a positive working relationship with the residents and local community."

The WIP JV comprises a residential investment portfolio of 565 homes in South London, the Walworth Estate, comprising a mixture of regulated tenancies and market rented homes.

At 0818 BST, the shares were up 0.1% to 315.20p.