The UK’s largest listed residential landlord Grainger said today it has seen a ‘modest improvement’ in the residential sales market over the last few months.
It said it had completed £169m of sales in the ten months to 31 July, exchanged contracts on a further £28m and had £39m in solicitors’ hands, in an interim management statement for the four months to 31 July 2009. At its Hornsey Road development in North London, Grainger said it had reservations for all 92 units from the April launch and had exchanged or completed on 72 units.
Andrew Cunningham, acting chief executive of Grainger said: 'We have seen a modest improvement in the residential sales market over the last few months and this has helped us achieve these sales results to the end of July. We expect total sales proceeds to exceed those of last year, providing further evidence of our ability to generate sales income even in these difficult market conditions.
'Despite signs of increasing stability we anticipate that the market will remain fragile in the short term and our focus will, therefore, continue to be on cash conservation.'
Grainger also said it has made good progress with its cash conservation programme through asset sales and reductions in purchases, and had reduced its net debt by £100m between 31 March and 31 July 2009. Its group net debt is £1.6bn and it is in discussions with lenders over a £400m facility due for repayment in June this year. It said the group has £344m headroom and a loan to value on its core loans stood at 67%, compared to a covenant of 80%.
It also said that a recent judicial review at its controversial Wards Corner scheme in North London had held that the planning consent granted in December 2009 was valid.
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