Grainger has exchanged contracts with Turbo Group Holdings to sell its equity release division for around £325m, including debt.
The residential landlord said the sale of “Retirement Solutions” to Turbo, an entity owned by Patron Capital Partners and Electra Private Equity, represented a “significant milestone” in the re-focusing and simplifying of Grainger’s business.
The sale, which is due to complete by the end of May, subject to Turbo receiving regulatory approval from the Financial Conduct Authority, is forecast to make Grainger a profit of around £55m.
Grainger expects to receive £175m in cash and transfer £150m of debt to the buyer, cutting Grainger’s net debt position by an estimated £325m.
Helen Gordon, Grainger’s chief executive, said: “This is an important transaction for Grainger.
“It accelerates the transition to a business focused on the residential rented sector and will simplify the Group.
“It will materially reduce our financial and operational costs, including costs associated with running a FCA regulated business, and will significantly strengthen our balance sheet and capacity for investment.”
