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Billionaire Mike Ashley buys stake in build-to-rent landlord Grainger
Billionaire Mike Ashley has acquired a 3.1% stake in large build-to-rent landlord Grainger.
Billionaire Mike Ashley has acquired a 3.1% stake in large build-to-rent landlord Grainger #UKhousingThe founder of Frasers Group, which owns Sports Direct, Flannels, House of Fraser, GAME and Jack Wills, acquired the stake in Grainger through a spread bet.
This means his profit or loss is calculated on the extent of price movement and his chosen stake per point.
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The move, reported in a stock market announcement on 7 January, will allow Mr Ashley to bypass the 0.5% stamp duty on purchases as he bets on price movements, because he did not buy the stock outright.
Mr Ashley will also be a ‘silent partner’, so he will have zero voting rights and will not be involved in how Grainger is run.
The FTSE 250-listed landlord currently owns 11,000 homes in cities and towns across England and Wales.
It is investing £1.3bn in building an additional 4,500 urban flats, which are expected to boost its rental income by up to £70m.
In November, the build-to-rent landlord reported a 12% rise to £123.6m in net rental income in its full-year results for 2024-25. Its pre-tax profit more than doubled to £102.6m, while its payout to shareholders increased by 10%.
Grainger also secured real estate investment trust status last year. It said at the time that this status would position it as a more tax-efficient investment vehicle, by eliminating double taxation for the landlord and its shareholders. This would then allow for improved returns.
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