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'CHEAP' HOMES PUT GRAINGER ON A NEW HUNT

There is a renewed confidence in the housing market

Friday November 6,2009

By Daily Express Reporter

GRAINGER, Britain’s biggest private landlord, is raising £250million in a rights issue to take advantage of what it sees as the “cheapest” property prices for several years.

Chief executive Andrew Cunningham said: “We want to get back on the front foot and buy new property over the next two years.

“A year ago it was difficult to see the bottom of the property market and that made buying dangerous.

“But even though we haven’t hit the bottom yet there is a bit more stability. Prices are the cheapest they have been for several years.”

The company has identified opportunities in London and the South-east.

The discounted two-for-one rights issue at 90p a share came as the company revealed a widening in its pre-tax loss from £112million to £170million for the year ended September 30.

It will also use the proceeds to pay off £173million of its £1.5billion debt. Shares fell 17¾p to 253½p.

Grainger’s move highlights a renewed confidence in the market.

Yesterday, property group Quintain announced plans to raise £191.2million in a cash call to partly fund small acquisitions.