The partnership, which sees Grainger Plc and Dorrington Plc in a straight 50/50 joint venture, comprises of 598 different residential units, including two commercial units based in South London.
The portfolio, which has is now owned under the Walworth Investment Properties Limited entity, produces a gross rental income of approximately £6 million per annum.
The deal comes just months after Grainger sold over 250 retirement homes across the country to Places for People, for a total of £18.3 million, a small fraction of the £3 billion worth of assets the company currently administrates.
Nick Jopling, Executive Director of Property at Grainger, said: “We are pleased to team up with Dorrington whom we know well and with whom we share a similar long-term investment view. As partners, we plan to build on our strong relationship with the residents of the Walworth Estate.
“This is a unique portfolio, with strong prospects, and we look forward to working with Dorrington to deliver a good service and enhance value.”
Taking into account debt finance and working capital requirements, early estimations would imply the immediate impact on Grainger’s net debt will be a reduction of approximately £83 million.
Speaking on the portfolio’s worth, Nigel Emmerson, head of residential real estate at Bond Dickinson – who facilitated the deal, said: “Since Grainger took over full ownership of this portfolio in 2011, it has generated a 36 per cent return on its equity investment.
“We hope that this new venture with Dorrington will help the joint venture maximise longer-term returns on the portfolio in the future.”
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