Patron Capital and Electra Partners have agreed the GBP325 million acquisition of Grainger Retirement Solutions, the home reversion equity release business of Grainger plc.
Completion of the transaction, in which each of Patron and Electra will invest GBP45 million, is subject to regulatory approvals. Board representation will be equal between Patron Capital and Electra Partners. Patron Capital will be the operating partner.
Retirement Solutions is an originator, consolidator and servicer of home reversion equity release plans. The business has around 20 staff and its current portfolio comprises over 3,500 properties.
Keith Breslauer, Managing Director of Patron Capital, says: “As property companies increasingly look to focus on pure development activity, we are taking advantage of the significant opportunity to acquire finance-related businesses and portfolios. This deal, which follows our acquisitions of shared equity mortgage portfolios from Galliford Try and Keepmoat earlier this year, provides us with a strong business that has an extensive portfolio and attractive exposure to the UK residential property market, particularly given the ageing population.”
Alex Fortescue, Chief Investment Partner at Electra Partners, says: “This deal is another great example of the Electra Partners investment model at work, making full use of our flexible mandate to tackle a complex carve-out from a corporate.
“The investment is a strong fit with Electra’s long-term capital. It offers an attractive and low-risk return, as well as some exciting opportunities to increase Retirement Solutions’ scale through M&A.”
Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC.
EY Real Estate Corporate Finance advised on the transaction.
