LONDON (Reuters) - Britain's largest quoted housing landlord Grainger is eying expansion of its home equity release business after striking a 50:50 joint venture with real estate fund manager Moorfield.
After buying Sovereign Reversions plc in June, Grainger has sold a 50 percent interest to a wholly owned subsidiary of Moorfield Real Estate Fund II for 17.5 million pounds cash plus an additional sum to cover its share of integration costs.
"Both Grainger and Moorfield are firmly committed to the equity release sector and increasing the value of the existing portfolio of assets and, in time, will look into the possibility of acquiring further assets," Grainger said in a statement.
The Sovereign Reversions business specialises in helping homeowners unlock equity from their properties without having to move house. Its property portfolio was valued at around 69 million pounds at April 30.
Grainger Equity Release Management Limited, a unit of Grainger, will manage the assets on behalf of the joint venture partners, for which it will receive an annual management fee based on the prevailing gross asset value. The transaction is expected to be net asset value neutral for Grainger.
(Reporting by Sinead Cruise, editing by Laurence Fletcher)