Last checked at 14 Jul 2020 07:00
14 July 2020
Grainger plc
("Grainger", the "Company", the "Group")
Acquisition
Grainger agrees to forward fund and acquire a 98-home, PRS scheme at Guildford Station for c.£37m
Grainger plc, the UK's largest listed residential landlord and leader in the UK private rented sector (PRS), today announces that that it has agreed to forward fund and acquire a 98-home PRS development (known as 'build to rent') at Guildford Station in Surrey for c.£37m. The developer is Solum Regeneration (Solum Regeneration (Guildford) LLP), a joint venture between Network Rail and Kier.
The investment builds on Grainger's cluster of PRS investments nearby in Hampshire (the total of which will be c.310 homes when this scheme is complete) and is located next to extensive transport links provided by Guildford Railway Station. The scheme forms part of the wider £150m station redevelopment scheme, which will comprise c.£25m of station improvements, c.440 new homes in total, a 412 space multi-story car park, 36,000 sq/ft of retail space and c.20,200 sq/ft of office space.
Guildford has strong rental market fundamentals and is home to a number of major, corporate employers including Barclays, Phillips Electronics and Sony, but currently has no existing professionally-run build-to-rent housing. With an estimated 44% of the population in rental accommodation, this scheme is expected to be in high demand amongst local renters.
The transaction is subject to the satisfaction of several conditions. Once these have been satisfied and the transaction becomes unconditional, anticipated in mid-2021, construction will commence.
Grainger expects this investment to generate a gross yield on cost approaching c.5.5% once stabilised, with completion anticipated in early 2023. This is a highly attractive investment opportunity which meets Grainger's disciplined investment criteria.
Helen Gordon, Chief Executive of Grainger, said:
"Today's acquisition in Guildford is an exciting addition to our growing portfolio of high-quality rental homes across the country. Demand for renting in areas like Guildford continues to grow, and this scheme will add to our cluster of nearby assets in Hampshire which will stand at over 300 rental homes, improving our ability to drive efficiencies while delivering a great service to our customers."
-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