Grainger to sell equity release division

Grainger was expecting a cash boost on Monday, with the announcement it was selling its equity release division.

The FTSE 250 landlord - the UK's largest listed residential lessor - reported it had exchanged contracts with Turbo Group Holdings to sell its Retirement Solutions business on or before 20 May, subject to Turbo gaining approval from the Financial Conduct Authority.

Gross consideration for the deal at completion was estimated at £325m, comprising £175m cash and the transfer of £175m debt to Turbo, secured by the assets sold.

Grainger was also looking at a £55m profit on the sale. The group's CEO, Helen Gordon, described it as an important sale.

"(The deal) accelerates the transition to a business focused on the residential rented sector and will simplify the group", she said.

"It will materially reduce out financial and operational costs, including costs associated with running an FCA regulated business, and will significantly strengthen our balance sheet and capacity for investment."

The sale follows the November sale of Grainger's interest in its German joint venture with Heitman, and the planned disposal of its wholly owned German assets, as part of the group's streamlining.

Turbo Group's parents, Patron Capital Partners and Electra Private Equity, both described the business - which includes more than 3,600 residential properties - as "attractive".