Grainger announces shift to focus on private rented sector

The company said on Thursday that it will sell Retirement Solutions and its business in Germany, a move it reckons will reduce overheads by around 10% and simplify its structure.

Grainger also plans to exit non-core development assets. The group said it will prioritise direct investment, with no new funds and no more focus on fee generation.

It will instead concentrate its resources on two core assets: regulated tenancies and the private rented sector, where it will invest over £850m through to 2020.

Chief executive officer Helen Gordon said: “It is clear that swift and decisive action is required to capitalise on the compelling PRS market opportunity and to enable Grainger to realise its potential of being the UK's leading private landlord.

“We will transition to one highly focused business that will deliver improved and sustainable, rental asset led shareholder returns."

At 0953 GMT, Grainger shares were up 0.7% to 226p.