Commercial Property News

Grainger plc, the UK's largest quoted residential property owner, today in its interim management statement covering  the four month period to 31 July 2010, said it has a sales pipeline of £154.8 million, down on last years figure of £180 million, as the firm now refurbishes more properties before sale. It has been obtaining margins this year of 42.6% on the 593 vacant units it has sold, up from the 35.5% margin it obtained in 2009.

Grainger has also been finding good acquisition opportunities and by the end of July they had completed, exchanged or placed in solicitors' hands some £67.6million of residential property acquisitions.They continue to identify attractive acquisition opportunities and their financial capacity and management expertise will enable themto take advantage of those that they believe will deliver long term shareholder value.

At 31 July 2010, Group net debt was £1,303m (31 March 2010: £1,308m) and committed undrawn facilities and cash amounted to £285m (31 March 2010: £300m).  The estimated loan to value on our core lending syndicate (based on September 2009 asset values) amounted to 54.4%.

Andrew Cunningham, Chief Executive of Grainger said:

"We continue to make strong progress in growing and strengthening the Company and its market leading position.  Our portfolio is continuing to prove to be resilient and we are trading well, despite price growth in the general housing market slowing in the last few months reflecting the economic uncertainty. Furthermore we have also taken advantage of market conditions to make well-priced acquisitions which we anticipate will produce good levels of return for our investors in the future."

Grainger shares closed yesterday at 114.3p valuing the company at £475.865 million.