Grainger PLC £80m build-to-rent scheme in Salford (0909P)
August 29 2017 - 1:01AM
UK Regulatory
TIDMGRI
RNS Number : 0909P
Grainger PLC
29 August 2017
29 August 2017
Grainger plc
("Grainger", the "Company", the "Group")
Acquisition
GBP80m 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.GBP80m 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.GBP500m.
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 GBP100m
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 GBP80m
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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