Move will save Britain鈥檚 largest listed residential landlord an estimated 拢15m in tax in its first year and help it attract investment
Grainger has completed its conversion into a Real Estate Investment Trust (REIT).
The firm, Britain鈥檚 largest listed residential landlord, said the move will save it 拢15m in corporation tax in its first year and help it to attract investment from a larger pool of investors.
The landlord has over the past few years shifted towards the Build-to-Rent market, selling off equity release portfolios and its German rental business.
A REIT is a tax-efficient vehicle, under which a firm must derive at least 75% of its income from rental activities and distribute at least 90% of taxable profits as dividends.
The firm now describes itself as an 11,000-home 鈥減ure play鈥� build-to-rent business with a pipeline of 4,500 homes.
It said it is 鈥減ositioned for growth鈥� and forecasts rental demand to grow by 20% by 2031.
Helen Gordon, chief executive of Grainger, said the move will attract more retail investors, adding some institutional investors only invest in REITs.
鈥淭he exciting thing is for retail investors 鈥� so people with their ISA 鈥� if they invest in Granger, our dividend comes through tax free,鈥� she said.
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