Grainger made £39m on sales of vacant properties for the four months to 31 January 2016 – 3% up from last year.
There is a further £83m in the sales pipeline.
The company has also posted like-for-like rental increases averaging 7.8% on new leases, including refurbishments, while new lets increased by 10%, down from 14.3% in 2015. It also posted a 3.6% rental increase on renewals.
Grainger will be selling its equity release division to Turbo Group Holdings for £325m, which will remove £150m of debt and will dispose of its German portfolio and business for £128m. The disposals are expected to result in a 10% reduction in overheads.
This is in line with the firm’s strategy to invest more than £850m into private rented sector assets to drive rental income growth.
So far, £124m has been invested, comprising circa £25m for 272 units and acquisitions in London.
Contracts have been exchanged to acquire Clippers Quay, a circa £99m PRS scheme in Salford Quays, Greater Manchester, expected to deliver more than 600 new private rented homes and commercial space.
Grainger and APG’s London and South East PRS fund, GRIP, in which Grainger has a 25% equity holding, acquired the freehold interest in Kew Bridge Court, W4, for £57m.
The company has also appointed Vanessa Simms as finance director. Simms joins from Unite Group.
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