Grainger’s new chief executive Helen Gordon has put the private rented sector at the heart of the company’s new strategy.
The former global head of real estate asset management at RBS has committed Grainger to invest £850m into PRS by 2020.
She said she plans to build to simplify and focus the company by selling off non core divisions including Grainger’s equity release and German businesses.
The strategy aims to cut costs by 10% following the disposals.
The regulated tenancy business, for which the company is best known, will continue under a new simplified structure.
Launching the company’s new strategy Gordon said Grainger needed to capitalise on its position as the “UK’s leading private landlord” and develop and invest in rental led assets.
The increased focus on PRS will see the company exit now non-core developments and instead turn its efforts to increasing the pace of developments of more rented accommodation across the UK.
Gordon said: “Our high quality regulated tenancy portfolio provides an excellent foundation from which we can grow our offering of private rented sector homes.
“However, it is clear that swift and decisive action is required to capitalise on the compelling PRS market opportunity and to enable Grainger to realise its potential of being the UK’s leading private landlord. We will transition to one highly focused business that will deliver improved and sustainable, rental asset led shareholder returns.”
