Grainger has exchanged contracts to dispose of part of the German estate, the FRM portfolio, to Heitman, a global real estate investment manager. The total gross consideration is £94m comprising £42m cash and transfer of £52m debt. Grainger has approximately £45m of assets in Germany remaining on which the sale process is underway, progressing towards a complete exit from the country. The NNNAV/NAV impact is marginal at -1p/-2p and improving LTV by c.1.6%. We are encouraged by further progress and release of capital for PRS investment in the UK. >£850m UK PRS investment by 2020 is a key strategic target. We retain our BUY recommendation and 295p 12m Target Price.