Last checked at 29 Aug 2017 07:00
29 August 2017
Grainger plc
("Grainger", the "Company", the "Group")
Acquisition
£80m build-to-rent scheme in Salford to deliver 375 PRS homes
Grainger, the UK's largest listed residential landlord, announces that it has conditionally agreed subject to planning to acquire a Private Rented Sector (PRS), build-to-rent development at Gore Street in Salford, near Spinningfields, Manchester, for a purchase price of c.£80m from Euro Car Parks and the English Cities Fund. Grainger will forward fund the project, UKLP Gore Street Limited (a joint venture between UK Land & Property and Sir Robert McAlpine Enterprises) will develop the site, and Sir Robert McAlpine will also be the contractor.
The site is anticipated to complete in 2020. It will deliver 375 private rental homes through a mix of apartments and townhouses, and provide a range of amenities for residents.
It is anticipated to generate a gross yield of c.7% once fully let.
Once this transaction completes, it will become part of Grainger's secured pipeline, which currently stands at c.£500m.
Greater Manchester is a key target for Grainger's PRS investment strategy due to its strong economic prospects and growth potential. This acquisition builds on Grainger's existing investments in the area of over 1,200 rental homes in the North West and its £100m investment at Clippers Quay in Salford to deliver 614 new rental homes where construction is well underway and first completions are expected in FY18.
Helen Gordon, Chief Executive of Grainger, said:
"We are pleased today to announce this significant £80m investment to deliver 375 new, high quality, purpose built rental homes in Salford, near Spinningfields, building on our existing portfolio in and around Manchester city centre and leveraging our operational platform and Manchester regional office."
Simon Parker, Managing Director of UK Land and Property, said:
"We are delighted that the hard work and support of key partners including Salford City Council, The English Cities Fund and Sir Robert McAlpine Enterprises has contributed to the opportunity for us to develop this high quality landmark scheme for Grainger plc. The project will become a focal point to the highly successful Chapel St regeneration initiative in Salford."
-ENDS-
For further information:
Grainger plc
Helen Gordon/ Vanessa Simms/ Kurt Mueller
London Office Tel: +44 (0) 20 7940 9500
Newcastle Office Tel: +44 (0) 191 261 1819
Camarco (Grainger PR)
Ginny Pulbrook / Geoffrey Pelham-Lane
Tel: +44 (0) 20 3757 4992/4985