Patron acquires Grainger’s retirement unit for £325m

The London-based real estate firm has teamed-up with UK-listed private equity firm Electra Partners to purchase the home reversion equity release business of Grainger as it looks to acquire finance-related businesses and portfolios.

Patron Capital and Electra Partners have acquired Grainger Retirement Solutions, the home reversion equity release business of London-listed landlord Grainger, for £325 million (€440 million; $480 million).

Grainger Retirement Solutions is an originator, consolidator and servicer of home reversion equity release plans, has around 20 staff and its current portfolio comprises over 3,500 properties.

Both London-based private equity real estate firm Patron and UK-listed private equity firm Electra will invest £45 million and share equal board representation. Patron will be the operating partner for the business.

“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,” commented Keith Breslauer, founder and managing director of Patron.

“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.”

Patron acquired the portfolio of 941 shared equity mortgages with an outstanding balance of around £25 million from housebuilder Galliford Try back in July. A month later Patron acquired a portfolio of 1,714 shared equity mortgages with £33.9m outstanding balance from Keepmoat.

EY Real Estate Corporate Finance advised on the transaction.