Grainger has sold its 50% stake in New Sovereign Reversions to Lone Star Real Estate Fund III for £4.5m.
New Sovereign Reversions Limited was a 50:50 joint venture between Grainger and Moorfield Real Estate Fund II.
Grainger will receive £18.5m, subject to completion adjustments, for its interest in the property portfolio, representing a pretax profit of £4.5m. The sale follows the announcement on 13 February by Moorfield Group, the fund’s asset manager, of its intention to sell the interest to Lone Star.
As at 31 March 2015, the Sovereign portfolio comprised 767 UK properties, most of which were subject to home reversion plans.
The transaction is expected to complete by 29 May. FCA approval for change of control has already been received.
Andrew Cunningham, chief executive of Grainger, said: “We are pleased to announce today’s sale, which was a compelling opportunity to realise an attractive return on our investment and support our jv partner’s wider strategic activity.”
