Grainger plc Share News (GRI)

(Alliance News) - Residential landlord Grainger PLC on Friday said it has agreed terms to acquire a build to rent scheme in southwest England, as it reported a "strong performance" ahead of its year end.

Grainger reported rental growth of 3.4% so far this financial year, which ends on Monday, and 3.1% like-for-like rental growth in its private rented sector homes. Occupancy in the private homes stands at 98% and resident retention rates "remain strong".

The company said its sales performance was "resilient with robust pricing in line with valuation". During the year, residential sales were weighted to the second half, as forecast, Grainger added.

Grainger has agreed non-binding terms with property developer Cubex Land Ltd to acquire a build to rent scheme in Bristol, consisting of 231 private rental sector homes.

Also, in the Wiltshire city is the Hawkins & George apartment complex, which Grainger said is fully let, "with rents ahead of underwriting". The company launched the development three-and-a-half months ago.

Grainger added: "A further 17 schemes are in the planning and legal stages, now totaling 5,381 units, representing an investment value of GBP1.20 million, including seven within our Transport for London partnership."

The FTSE 250-constituent reported positive progress from its joint-venture with Transport for London. Pre-planning application consultation with local authorities has begun with construction expected to commence on all sites in the 3,000 home project by 2021.

Grainger has started to roll-out the Connect platform, which allows users to complete the entire rental process, including viewing and lease arrangements online.

It said: "Connect will enable Grainger to minimise costs and drive gross-to-net operational efficiency and further differentiate our already market leading position."

Looking ahead, Grainger will launch the Eccy Village 23-home complex next month and when fully-let the Sheffield development will generate a total annual net rental income of GBP1.6 million, the firm explained.

Grainger is also on track to complete four other schemes located in London, Milton Keynes and Manchester.

Shares in Grainger opened 0.5% higher at 246.20 pence apiece in London on Friday.

By Eric Cunha; ericcunha@alliancenews.com

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