The CEO of property firm Grainger Plc has said the company is officially on the lookout for a development site in Newcastle.
Two years ago CEO Helen Gordon said she was embarrassed that Grainger, which has its headquarters in Newcastle, was not developing any sites in the North East.
Ms Gordon said rumours that the company was involved in the Forth Bank development in Newcastle were untrue, but she described Newcastle as a “priority area” and said the firm was on the lookout for a development site.
She said: “We continue to look at Newcastle. We haven’t managed to secure anything in Newcastle yet but it is on our investable list. We have over 100 staff in out Newcastle office and they are pretty keen that we secure a site.
“It is not about ticking down any list; it [Newcastle] is a key priority area. There is potential for growth. We think it has good leadership and good infrastructure and fantastic graduate retention.
“It has all the things we like. It is just about finding the right site.”
The hunt for development sites is part of the firm’s strategy to invest in regional cities around the UK and is being fuelled by a share placing which allowed the firm to raise £187m earlier this year. The company also issued a £350m bond to pay off its short term debt.
As part of the growth strategy, Grainger is focusing on high-performing cities and has now secured schemes, in Guildford, Birmingham, Cardiff, and Nottingham.
The company has made moves in other regions around the country. It progressed its lease-up of its Brook Place development in Sheffield, launched Solstice Apartments in Milton Keynes and another at Millet Place at Pontoon Dock, which is a joint venture with Local Pensions Partnership.
In total the company delivered 612 new rental homes this year and is on track to deliver 1,000 more in 2021.
Ms Gordon’s comments come following the release of Grainger’s financial accounts for the year ending September 30 2020.
During the year the group’s rental soared 16% to £73.6m, up from £63.5m the year before. Of its rental income, £12m was generated through public rental sector investment schemes, while £1.5m came from rental growth.
Its bullish start to the year paid off with operating profit increasing by £13.5m to £118.4m.
Overall the group’s revenue fell year-on-year, from £222.8m to £214m, though this was due to the firm making more from property disposals in 2019.
