PROPERTY company Grainger has entered into a joint venture with a German firm which will take a major stake in around 3,000 rental properties owned by the Newcastle plc in Germany.
Global real estate investment firm Heitman has signed up to the create MH Grainger JV Sarl, which will be 75% owned by the German business.
Grainger will retain ownership of 25% of the housing stock and will receive fees from Heitman for managing the property. The North East firm, Britain’s biggest landlord, continues to directly own a further 3,400 assets in Germany.
Rob Reiskin, co-head of Europe at Heitman, said: “We are very happy to partner with best-in-class operator Grainger in the German rented residential market where we view the fundamentals as particularly attractive.
Andrew Cunningham, chief executive of Grainger, said: “This new partnership with Heitman and its institutional client represents a strong endorsement of Grainger's operational platform and the prospects for the German residential investment market.
“This deal supports our on-going programme of generating greater fee income from third parties, balancing our trading income with other recurring income - a key aim for the company, and our process of deleveraging.”