Grainger: UK’s largest listed landlord sets aside £9.2m for fire safety remediation
The UK’s largest listed residential landlord has taken a £9.2m provision to fix historic fire safety defects.
The build-to-rent developer was not asked by the government to sign up to the building safety pledge, however reviewed its estate in a similar fashion.
Speaking to CityA.M., CEO Helen Gordon said the company had “mirrored” housebuilders and probed historic buildings from the past thirty years.
However, the majority of the FTSE 250 firm’s portfolio was built after the 2017 Grenfell Tower, which triggered a reckoning among the construction industry.
“Where appropriate, we are seeking recoveries from contractors and insurers which may reduce the overall liability over time,” the firm said in an update on Thursday morning.
In half-year results, Grainger revealed a +122 per cent increase in profit before tax to £98.8m, versus £44.5m for the comparable period in 2021.
The company, which boasts a £3.1bn operational portfolio, said it had delivered 23 per cent growth in net rental income, to £42.8m.
London was described by Gordon as “the best city” for rental developments, due to young professionals heading to the capital to pursue the next step in their careers.
“It’s our strongest city, has the best growth potential and has the strongest supply and demand dynamics,” she added.
The company has secured six schemes through the planning scheme in the first half of this year, in a “fantastic result” for Grainger, Gordon said.
Some 2,000 new homes will be delivered under the scheme, with around 40 per cent classed as affordable homes.
Within Grainger’s £2.4bn pipeline, the company is working with Transport for London, with which it will split the rent on developments.
The firm said it was “well prepared for a higher inflationary environment,” and it anticipated its top line growth to offset the impact of cost inflation.
It added: “Our value-for-money, mid-market, energy-efficient properties support our customers financially, with our new, build-to-rent properties offering free super-fast broadband, gyms, and co-working spaces.”