Grainger plc, the UK's largest listed residential landlord and leader in the UK private rented sector (PRS), announces that the previously disclosed, yet unnamed transaction in Leeds has now started on site following satisfaction of the contractual conditions. The scheme, known as Fabrik, is a 216-home PRS development (known as 'build to rent') in Leeds which is being forward funded for c.£34m. The developer is Leeds-based Oakapple Group with Tolent Construction Limited as the building contractor.
Construction of the scheme, which has full planning consent, has recently commenced with completion anticipated for late 2021. Grainger expects this investment to generate a gross yield on cost of over 6.5% once stabilised.
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 Leeds, providing scale and operational efficiencies.
Helen Gordon, Chief Executive of Grainger, said:
“We are pleased to announce start on site of our latest investment in Leeds, one of our target regional cities, which will deliver 216 new high quality, purpose built rental homes. Fabrik will complement our 242-home Yorkshire Post development, also in Leeds, thereby providing over 500 PRS units in Leeds once these schemes are delivered.”
Philip Taylor, Chairman of Oakapple Group, said:
“Oakapple are delighted to be working with Grainger on delivery of this project. As a Leeds business we are particularly pleased to see a major institution committing further to our City. It is a vote of confidence in the South Bank and hopefully a catalyst for further schemes to come forward in the area”.