Grainger Plc - Acquisition
Grainger agrees to forward fund and acquire a 156 home PRS build to rent scheme in Birmingham for c.£28m
Grainger, the UK's largest listed residential landlord, today announces that it has exchanged contracts with Blackswan Property Limited to forward fund and acquire a private rented sector (PRS), build to rent development, Gilder's Yard in Birmingham, comprising 156 new purpose built PRS homes, for c.£28m.
Grainger expects the investment to generate a gross yield on cost over 7% once stabilised.
Blackswan Property Limited will develop the site and Shaylor, a Midlands based contractor, will construct the scheme.
Birmingham is a key target city for Grainger's PRS investment strategy due to its strong economic prospects and growth potential, and builds on Grainger's existing local management platform.
Helen Gordon, Chief Executive of Grainger, said:
"We are pleased today to announce our latest investment in one of our key target locations, Birmingham, which will deliver 156 new high quality, purpose built rental homes, building on our existing portfolio in and around the area and leveraging off our operational platform."
Grainger will be announcing its full year financial results on 30 November.