Last checked at 28 Nov 2016 07:00
28 November 2016
Grainger plc
("Grainger", the "Company", the "Group")
Acquisition
£46m build-to-rent scheme in Bristol to deliver c.200 PRS homes
Grainger plc, the UK's largest listed residential landlord, announces that it has agreed to acquire a Private Rented Sector (PRS), build-to-rent development at Finzels Reach in Bristol, for £45.7m from a vehicle backed by clients of Palmer Capital and Cubex Land. Grainger will forward fund the project, while Cubex Land will be the developer and Willmott Dixon will be the contractor.
The site, which has planning consent, will deliver 194 private rental homes across two blocks and is expected to complete at the beginning of 2019.
It is anticipated to generate a gross yield on cost of c.7% once fully let in 2019.
Bristol is a key target city for Grainger's PRS investment strategy due to its strong economic fundamentals, growth prospects and the strength of its housing market.
Helen Gordon, Chief Executive of Grainger, said:
"We are pleased today to announce further significant progress in our PRS investment strategy by agreeing to forward fund a 194 home, build-to-rent scheme at Finzels Reach in Bristol, a location which we believe has strong market prospects and excellent growth potential."
Alex Price, Chief Executive of Palmer Capital, said
"We are delighted to be working alongside our partners, Cubex Land and Grainger plc, to see this site brought forward for PRS. It will enhance the thriving mixed use community we have developed at Finzels Reach and provide much needed accommodation to Bristol City Centre."
Gavin Bridge, Director of Cubex Land, said
"This is a fantastic inward investment in Bristol, by a well-respected and experienced landlord. Our contemporary styled apartments are perfectly placed to serve the rental customer and will complement the rest of our Finzels Reach apartments, hotel, offices and leisure."
-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
Cubex Land
Caroline Harris Spirit PR Tel: +44 (0) 117 944 1415