Grainger is reported to have sold its equity release division to two private equity companies for £325m.
Patron Capital Partners, which owns Cala Homes, and Electra Private Equity are reported to have exchanged contracts to buy Grainger Retirement Solutions, which manages over 3,600 homes covered by an equity release scheme known as home reversion - this permits owners to sell a share of their property but remain as a rent-paying tenant.
Helen Gordon, the new Grainger chief executive, is reported as saying: “This is an important transaction for Grainger. It accelerates the transition to a business focused on the residential rented sector and will simplify the group.”
Some commentators believe the sale will allow Grainger to concentrate on possible expansion in the Build To Let sector.