Grainger is exiting the German residential sector following pressure from activist shareholder Crystal Amber.
The UK property company said the move to sell its German assets was part of an 鈥渙ngoing wider review of all aspects of its business鈥�. The 拢311m (鈧�435m) portfolio of 5,599 assets is considered 鈥渘on-core鈥�, it said.
鈥漈his will enable the group to accelerate its strategic and financial focus on its UK residential activities to enhance shareholder value whilst taking advantage of the currently strong market for residential property in Germany,鈥� Grainger said.
Investment bank Lazard has been appointed to advise on the disposal. Grainger owns 2,848 assets worth 拢140m, and a stake in 2,751 properties in a joint venture with worth 拢171m.
In its 2015 half year report, Grainger said the value of the German portfolio had 鈥渞emained broadly flat鈥�, with a reduction of 拢100,000 after the impact of increases to real estate transfer tax in two German states, which had a 拢700,000 adverse impact.
Grainger has previously teamed up with Dutch asset manager APG to invest in a London build-to-rent scheme. The pair鈥檚 GRIP Unit Trust joint venture is forward purchasing a 90,000sqft private rented sector () scheme from Bouygues Development for 拢33.25m.
APG entered the UK residential property market , buying part of a 拢350m portfolio with Grainger. The Dutch institution invested 拢158m in GRIP to buy part of G:res1, one of Grainger鈥檚 property funds.
The firm also said that Helen Gordon will join the firm later this year and replace Andrew Cunningham, who steps down next February, as chief executive. Europe chief executive Rob Wilkinson has joined the firm鈥檚 board.
Grainger recently refinanced a 拢580m syndicated bank facility, reducing its cost and extending its maturity.
