Grainger invests in GBP80m Salford build-to-rent project
Residential landlord Grainger has agreed to acquire a 375-home build-to-rent development in Salford, North West England for roughly £80m.
The FTSE 250 company has conditionally agreed to the purchase, subject to be granted planning approval, with the private rented sector building anticipated to be complete in 2020 and generate a gross yield of close to 7% once fully let.
Grainger said it will forward-fund the project, with a joint venture between UK Land & Property and Sir Robert McAlpine Enterprises developing the site, and Sir Robert McAlpine as the main contractor.
The 375 private rental homes will be a mix of apartments and townhouses, and provide a range of amenities for residents.
Grainger said once the transaction completes, it will add to its circa-£500m secured pipeline.
"Greater Manchester is a key target for Grainger's PRS investment strategy due to its strong economic prospects and growth potential," the company said, adding to 1,200 rental homes in the area in the North West and the £100m Clippers Quay in Salford that will begin to see completions next year.
Chief executive Helen Gordon 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."