Lloyds Banking Group has selected UK quoted residential property firm Grainger as the preferred supplier to its Residential Asset Management Platform (RAMP) and the manager of the new unit's insolvent residential assets.

The agreement with Lloyds Banking Group represents a further step forward in Grainger's strategy to increase revenues from its existing resource base. Grainger will receive fees based on rent, disposals and shared success fees, thereby fully aligning its interests with those of any administrator or receiver of any assets placed into the RAMP, the company said in a press statement.

'This is an important milestone for Grainger and we are excited to have been selected by Lloyds to work on the creation and management of RAMP,' said Nick Jopling, Grainger's Executive Property Director. 'The offer that our property services and asset management teams brought together to the bid clearly demonstrates that Grainger's operational platform offers real value enhancement in residential investment.'

The transaction will deliver to Grainger a recurring income stream with the potential for further upside without the need to commit any group equity or debt, he added.

Grainger currently manages a portfolio in the UK comprising approximately 20,000 residential assets.