GRAINGER yesterday announced it has teamed up with Europe’s largest pension fund manager to create a £349m residential property fund.
The Grip fund will see Grainger and APG Strategic Real Estate Pool acquire G:res, a residential property fund set up and managed by Grainger since 2005. APG is making an investment of £158m while Grainger is investing £59m, comprising proceeds from its stake in G:res and an additional £9.1m of new equity.
The deal marks one of the biggest investments into the private-rented sector. Last year, the government launched a review into the sector to find ways of encouraging institutions to invest in privately rented homes to meet the shortage in demand.
Grainger boss Andrew Cunningham said:“We see APG’s commitment as a clear acknowledgement of UK residential property’s growing appeal as an institutional asset class, as well as a significant endorsement of Grainger’s expertise in the UK residential sector.”