NORTH-EAST property firm Grainger has unveiled rising profits, boosted by a string of acquisitions.

The Newcastle-based business, which is Britain’s biggest residential landlord, said its operating profit rose from £48m to £59.4m as it took over a number of companies and won new business, including contracts for the Ministry of Defence.

Chairman Robin Broadhurst said: “General house prices have remained broadly stable over the last six months, although liquidity and transaction volumes remain low.

“Grainger has continued to respond to this environment by rebalancing its portfolio to geographic locations where economic activity and therefore the potential for capital appreciation is higher.”

Instead of paying out an interim dividend, the business has decided to offer a tender to shareholders which will offer one share for every 238 held at a price of 149p.

Under the scheme, Grainger says it will return £2.6m to shareholders.