Home Grainger


Private equity firms Patron Capital and Electra Partners have bought the home reversion equity release business of residential landlord Grainger for £325 million.
Grainger has appointed Unite Group’s Vanessa Simms as its finance director to replace the retiring Mark Greenwood. Simms, who is the deputy chief financial officer at student accommodation specialists Unite, will join Grainger in early spring 2016 and will be based in London.
HSBC and Santander have provided a £150m, five-year facility to developer Grainger to refinance a portfolio of its residential developments. The loan replaces an existing £120m facility from the two banks which was due to mature next year. The margin on the new facility is 170bps, down from 255bps on the previous loan.
Grainger has secured a £580m refinancing facility from a syndicate of five banks at a margin of 170bps, a saving of 50bps on its current facility. The Royal Bank of Scotland, HSBC, Barclays, Nationwide and Allied Irish Bank have refinanced their own existing facility.
Grainger has reported net debt of £1042m and a consolidated LTV of 46%, both figures practically unchanged from the previous period, for the half year to 31 March 2015. The average interest rate was 5.1% and was achieved with new interest rate swaps made during the period, the breaking of a legacy swap and the drawdown of £26m of low cost government funding. Undrawn facilities and cash amounted to £242m.

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