Sunday, Oct 26, 2008
UK’s biggest listed residential landlord suffers as house prices crash
nebusiness.co.uk: Grainger shares slump after pay-out offer to bondholders
Shares in the UK’s biggest listed residential landlord Grainger plc slumped to an eight-year low yesterday after it offered an early pay-out to holders of bonds in exchange for a bigger stake in the company.
The Newcastle company saw its value plunge by 44% to 70.75p a share after it unveiled the offer which could help cut its debts. Grainger, which had seen its share value sink from more than 600p just three years ago, has been keen to reduce its debts as its assets are largely tied up in residential property. British house prices are falling at record rates, down 12.4% year-on-year in September according to both Halifax and Nationwide, the two most closely-watched monthly surveys.
Posted by jack c @ 11:29 AM (524 views) Add Comment
1 Comment
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1. mark wadsworth said...
Hurray! Grainger are doing a debt-for-equity swap. If it's good enough for them, why isn't it good enough for the banks?