The CEO of the 海角视频鈥檚 largest listed landlord says the firm is proud to play its part in the Levelling Up agenda after doubling down on its commitment to the regions.
Newcastle based Grainger Plc, which was founded 110 years ago this year, has spent the last six years selling off older tenancies and retirements homes to become a leader in the fast-growing private rental sector (PRS).
The firm initially planned to plough 拢850m into PRS schemes, building and acquiring modern apartment blocks in key cities around the 海角视频, but that investment has grown significantly to a current operational portfolio worth more than 拢3bn.
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Grainger CEO Helen Gordon says the firm has been focusing on the regions long before the Government called upon businesses to aid the Levelling Up agenda, with shareholders fully supportive of its plans to create new build homes outside of London.
She said: 鈥淲hen I started in the business we were worth 拢700m to 拢800m, whereas our operational portfolio is now over 拢3bn. More importantly we鈥檝e got a pipeline of more than 拢2bn worth of homes, either under construction or going through planning or legals, so we鈥檙e going to see really big growth in the business.
鈥淲hen Boris Johnson came to power in December 2019, the following February we raised equity from shareholders to respond to the Levelling Up agenda and as a response to that we committed to schemes in Nottingham, Derby and Sheffield. We have gone to our shareholders and said: 鈥榃e are quite London-centric at the moment but our pipeline is mainly in the regions鈥.
鈥淥ur shareholders were incredibly supportive of that growth agenda. We included a scheme in Birmingham and literally the day we were fundraising they made a commitment to HS2 in Birmingham and the site is adjacent to the High Speed 2 station.鈥
Last year The Forge, close to Newcastle Quayside, became the company鈥檚 first PRS investment in Newcastle, and Ms Gordon says the firm is now on the hunt for more in the area.
Further investment is also being carried out as its head office at Citygate in Gallowgate, Newcastle, where more than 拢250,000 is being spent on creating a modern base for its 150 workers, including its new residents services team, which was launched last year.
Ms Gordon said: 鈥淲e鈥檝e got a base in Newcastle, where more people are employed than anywhere else in the 海角视频, yet we were finding it very difficult to find sites that we were able to develop in Newcastle.
鈥淭hat is still an ambition. The Forge is really a foundation point for us in Newcastle.
鈥淥ne of our investment directors is based in Newcastle and is looking at everything that comes forward. Before the sale of the football club we were looking at the site adjacent to the club, although I suspect they want to hang on to that now. We鈥檙e looking all over the city really. I wouldn鈥檛 rule our remoter areas 鈥 although nothing is remote in Newcastle, I think it鈥檚 a very concentrated city that you can really get your arms around.
鈥淲e see the city as a good place to develop and in terms of affordability, a lot was developed in central Newcastle around student accommodation and that, on a per square foot basis, is much more expensive than build to rent because they are smaller units than we have.
鈥淭he cities getting levelling up right are good university cities that are managing to get graduate retention and because you鈥檝e got good graduate retention, you then have the people who want the talent, and will relocate or bring jobs to the area.
鈥淣ewcastle has got fantastic universities, it鈥檚 got a big student population, it鈥檚 an exciting place for young people to stay, rather than go to London, but it鈥檚 also one of our oldest cities and very constrained for land in central area. But if you look at how we developed in Leeds and Manchester and in Bristol that have similar characteristics we don鈥檛 just develop right in the heart of the city centre.
鈥淲e鈥檝e watched with interest the investment coming in to the city and that really is where you need young people to be - there, available, willing to work, willing to spend and willing to have their careers in the locale and not disappearing down to London.鈥
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