Grainger secures new debt facility

HSBC and Santander have made a £120m loan to Grainger, secured on a £285m portfolio of eight London residential blocks. The loan, at a 4.28% average cost, replaces a previous £188m Royal Bank of Scotland/Lloyds loan, giving those banks an exit and introducing two new bank relationships for Grainger.

The quoted residential firm has also bought partner Genesis Housing Group’s 50% share of the portfolio for £15m, including associated subordinated loan notes on the portfolio. The difference of £68m in the loans and the £15m paid to Genesis will be funded from Grainger’s cash and committed facilities. The 1,630 flats in the portfolio generate £12m in annual rent.