Grainger has slashed its building and buying activity and embarked on a £200m asset sell-off to shore up its bottom line.
In an update for the four months to 31 July, the UK’s largest quoted residential landlord said it was targeting increased cash generation to ride out the slump in the housing market.
The company said that residential sales in the 10 months to 31 July were £122m, with a further £62m exchanged or in solicitors’ hands, and another £32m being marketed. This compares with an equivalent £143m for the financial year to 30 September 2007.
However, sales of vacant units from its core portfolio since March 2008 were at 2.7% below September 2007 valuations, and further sales due to be completed in the next few months are expected to achieve prices around 7% lower.
The company confirmed it had postponed almost all development activity, and said it had made just £9m of acquisitions in the past four months.
“These are unquestionably difficult times for businesses in the residential sector,” said chairman Robin Broadhurst.
“In response, we are putting increased emphasis on cash generation – by driving through a significant programme of asset sales, reducing acquisitions and spend on development projects and by cutting overhead costs.
“Despite the challenging trading market, our unique portfolio is showing relatively good liquidity and we expect overall full-year sales values from our core and home reversion portfolios to exceed those of last year.”
? Grainger has appointed Peter Brock managing director of its German advisory business, Grainger Deutschland. Brock joins from listed German property company Vivacon where he was head of asset management. Grainger has a €500m (£390m) German portfolio.
