Grainger to accelerate PRS growth strategy with £185m placing

The FTSE 250 provider of private rental housing said that including additional debt of about £120m, proceeds from the placing will generate aggregate funding capacity of approximately £305m which will enable it to commit to a further £246m of new acquisitions into its secured pipeline. In addition, the £305m gives the group headroom to pursue a further £59m of projects currently in the planning and legal pipeline.

Chief executive Helen Gordon said: "We have real momentum in the business and now is the right time to invest for the future and increase our investment in our secured pipeline. Over the last four years, we have transformed Grainger into the UK's leading provider of private rental homes, with circa 9,000 operational rental homes and an attractive and growing pipeline of opportunities for over 9,000 more new private rental homes.

"Today's placing will enable us to bring forward £246 million of investment for four new schemes, three of which are in strong regional cities, delivering 1,160 new homes, as well as expand our planning and legal pipeline, accelerating the delivery of net rental income and earnings growth."

Grainger said the outlook for the UK's private rented sector is "positive", with growing customer demand and structural undersupply supporting the investment case.

At 1005 GMT, the shares were down 0.2% at 311.48p.