Last checked at 15 May 2018 07:00
LEI: 2138007CEIRKZMNI2979
15 May 2018
Grainger plc
Acquisition
Grainger agrees to acquire a 261 home, PRS build to rent development scheme in Milton Keynes for c.£63m
Grainger plc, the UK's largest listed residential landlord, today announces that it has conditionally agreed to acquire a 261 home private rented sector (PRS), build to rent development in Milton Keynes from Peveril Securities Limited for c.£63m.
Peveril Securities Limited will develop the site, Mayforth will act as development manager and Bowmer and Kirkland will be the contractor.
The scheme has planning consent, and the transaction is conditional on the completion of a new adjacent YMCA as part of the first phase of the wider development which is expected in Q3 2019 prior to construction starting on site.
Grainger expects the investment to generate a gross yield on cost of c.6.25% once stabilised, with completion anticipated in the second half of 2021.This is a highly attractive investment in central Milton Keynes with strong future growth prospects and meets Grainger's strict and disciplined investment criteria.
Helen Gordon, Chief Executive of Grainger, said:
"We are pleased to announce our latest investment in Milton Keynes, one of our key target locations, which will deliver 261 new high quality, purpose built rental homes. This new investment will complement Silbury Boulevard, our other PRS build to rent scheme of 139 homes in Milton Keynes, which we own in our GRIP REIT joint venture, and is currently under construction."
Ralph Jones, Director of Peveril Securities Limited, said:
"We are delighted to be working with Grainger to provide a further 261 residential units in Milton Keynes, and we hope it will be first of many opportunities in the future for Peveril, Bowmer and Kirkland and Grainger to work together."
-ENDS-
For further information:
Grainger plc
Kurt Mueller
London Office Tel: +44 (0) 20 7940 9500
Camarco (Grainger PR)
Ginny Pulbrook / Geoffrey Pelham-Lane
Tel: +44 (0) 20 3757 4992/4985