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(Alliance News) - Grainger PLC on Thursday reported "exceptional lettings performance" towards the end of its financial year, as it agreed a GBP141 million forward funding acquisition of a 401-home scheme in west London.
Grainger is a Newcastle Upon Tyne-based landlord that develops and rents private rental homes. It has an operational portfolio of around GBP3 billion with a GBP2 billion pipeline.
The landlord's occupancy rate at the end of September was 94%, though it expects to return to a stabilised occupancy of 95% imminently.
It noted focused recovery on occupancy schemes most impacted by the pandemic, including Argo Apartments in Canning Town, east London, which is back to full occupancy with a waiting list and Millet Place in Pontoon Dock, east London, which now has a 95% occupancy rate after initial leasing was slowed by Covid-19.
"With the reopening of the UK and a return to normal post the pandemic, we have delivered an exceptional lettings performance," said Chief Executive Helen Gordon.
"In the run up to and including September we delivered week-on-week record lettings across the portfolio on both our stabilised assets and our five newly launched schemes across the country."
Grainger's total like-for-like rental growth was 1.0% for the financial year ended September 30, with regulated tenancy like-for-like rental growth rising the most, up 3.6%. Private rental sector like-for-like growth was 0.3%.
Separately on Thursday, Grainger unveiled a GBP141 million deal to forward fund and acquire a 401-home build-to-rent scheme in Southall, west London.
Named Merrick Place, construction is expected to start in December with completion targeted in 2025. Grainger anticipates Merrick Place will generate a gross yield on cost of around 5.75% once it is fully let and stabilised.
The acquisition will be part-funded by the GBP209 million fundraise completed by the landlord at the start of September.
Grainger shares were trading 3.8% higher at 307.92 pence in London on Thursday.
By Josie O'Brien; josieobrien@alliancenews.com
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