Grainger plc, the UK's largest listed residential landlord and leader in the UK private rented sector (PRS), today announces that it has agreed to forward fund and acquire a 108 home PRS development ('build to rent') in Tottenham Hale, North London for c.£41m. The developer is Waterside Places, a Joint Venture between national development and urban regeneration specialists, Muse Developments, and the Canal & River Trust.
Waterside Places will develop the site and McLaren will construct the scheme which is the first phase of a wider development.
The scheme which has planning consent is subject to a number of conditions which are to be satisfied prior to construction starting on site, anticipated in early 2019.
Grainger expects this investment to generate a gross yield on cost of between 5.5-6% once stabilised, with completion anticipated in early 2021. This is a highly attractive investment opportunity and meets Grainger's strict and disciplined investment criteria. The scheme builds on Grainger's existing portfolio of PRS investments in Haringey which will provide scale and operational efficiencies once practical completion has occurred.
Helen Gordon, Chief Executive of Grainger, said:
“We are pleased today to announce our latest investment in Tottenham Hale, one of our target London locations, which will deliver 108 new high quality, purpose built rental homes and complement our Apex House development close by in Seven Sisters.”
Nigel Franklin, Chairman of Waterside Places, said:
“We're delighted to conclude the deal with Grainger plc, which forms part of the first phase of development at Hale Wharf, Tottenham.
“Hale Wharf is an exciting development at the heart of one of the Mayor of London's Housing Zones. Once complete, the wider scheme will deliver up to 505 high-quality, canal side homes, extensive public realm improvements, along with a range of commercial and leisure space.”