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UK: Retail entrepreneur Mike Ashley has taken a stake in Grainger, Britain’s largest listed residential landlord.
In a note to the market on Wednesday, Grainger PLC revealed that Ashley’s stake in the company had crossed a threshold for notification. Ashley’s stake, acquired through financial instruments, specifically a spread bet with cash settlement, amounts to 3.1 per cent of the firm’s shares.
Ashley was previously chief executive of Frasers Group (formerly known as Sports Direct) and the owner of Newcastle United Football Club before its takeover by Saudi Arabia’s sovereign wealth fund.
The transaction makes reportedly Ashley a silent partner in the Newcastle-based business, meaning he will have no voting rights in the company.
Grainger completed its conversion into a Real Estate Investment Trust (REIT) in September. A REIT is a tax-efficient vehicle, under which a firm must derive at least 75 per cent of its income from rental activities and distribute at least 90 per cent of taxable profits as dividends.
The company said the move would save it £15 million in corporation tax in its first year and help it attract investment from a wider pool of investors.
Grainger has 4,500 BTR homes in its pipeline and forecasts rental demand to grow by 20 per cent by 2031.
Highlights:
• Retail entrepreneur Mike Ashley has taken a 3.1 per cent stake in Grainger, Britain’s largest listed residential landlord
• Ashley’s stake, acquired through financial instruments, is a spread bet with cash settlement
• Ashley was previously chief executive of Frasers Group (formerly known as Sports Direct) and the owner of Newcastle United Football Club before its takeover by Saudi Arabia’s sovereign wealth fund
• Grainger has 4,500 BTR homes in its pipeline and forecasts rental demand to grow by 20 per cent by 2031
