Grainger has sold its 50% stake in its Walworth residential project in south London to its partner Dorrington for £67m.
The Walworth Investment Property jv owns an investment portfolio of 565 flats, comprising regulated tenancies and rented homes.
Grainger said the transaction was in line with its strategy “to simplify and focus the business, invest more directly on balance sheet, recycle non-core assets and deploy capital towards new private rented sector homes and build-to-rent schemes”.
The proceeds will generate a £7m profit before tax and legal costs.
Helen Gordon, chief executive of Grainger, said: “Today’s transaction follows our strategic plan to simplify and focus the business, while supporting our growth in the private rented sector. The proceeds will be re-invested into new, purpose-built PRS homes.
“Working with Dorrington over the past several years has been a positive partnership. I am pleased that Dorrington will remain as the owner of the estate, having built a positive working relationship with the residents and local community.”
Duncan Salvesen, head of residential at Dorrington, said: “Following a mutually rewarding partnership with Grainger over the past five years, we are pleased to now own 100% of this estate. Dorrington has a commitment to the residential sector and this acquisition adds to our London-focused portfolio.”
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