(Alliance News) - Private rented property owner Grainger PLC said Tuesday it agreed to forward fund a 146 homes development in London for GBP62 million.
The build-to-rent Hallsville Quarter development in Canning Town will deliver 146 private rented homes as well as 12,500 square foot of residential space. The development will be the fourth provided for Grainger by developer Linkcity and building contractor Bouygues UK.
Grainger explained the Hallsville development will provide the firm with scale and operational efficiencies in the area. Hallsville is just 200 metres from the Argo Apartments owned by the FTSE 250-listed company and near to the Pontoon Dock development due to complete later in 2019.
The Hallsville transaction is dependent on unspecified conditions being met. Once these have been completed, the agreement will become unconditional and construction is expected to start in late 2019.
Completion is due in late 2022 with the new development expected to generate a gross yield on cost of 5.5%.
"We are pleased to further strengthen our London presence with this acquisition, which will deliver 146 high quality homes for rent in London, one of our top target cities," Grainger Chief Executive Officer Helen Gordon said.
"The area is undergoing significant regeneration, and we know from our experience with Argo Apartments that this is a very popular location to live, with such great access to the wider city," Gordon added. "Upon completion of this project, Grainger's east London cluster will comprise 534 purpose-built PRS homes."
Shares in Grainger were 1.1% higher at 251.40 pence in London on Tuesday.
Grainger plc (GRI)