GRI Grainger Plc

TIDMGRI

RNS Number : 4518Y

Grainger PLC

13 May 2021

13 May 2021

Grainger plc

("Grainger", the "Company", the "Group")

Acquisition

Grainger agrees to forward fund and acquire a 259-home build to rent scheme with St James Securities in Derby for GBP37.4m

Grainger plc, the UK's largest listed residential landlord with 9,109 operational rental homes and a further 8,851 in its GBP2.1bn pipeline, has agreed to forward fund and acquire a 259-home build to rent development in Derby for c.GBP37.4m, with St James Securities. The scheme is part of St James Securities wider mixed-use regeneration of the Becketwell area in Derby city centre. GMI Construction Limited has been appointed as the contractor.

This is Grainger's first investment in the city of Derby, a target city within Grainger's national build-to-rent and PRS investment strategy, identified for its strong market fundamentals as a location with deep rental demand and strong economic growth prospects. The build to rent scheme is in an attractive location on Victoria Street, within close proximity to the town centre.

This new investment generates further economies of scale in conjunction with Grainger's other Midlands scheme, Queens Road, Nottingham. Across both schemes, Grainger will have 607 rental homes in the area.

Grainger expects this investment to generate a gross yield on cost of c.7% once stabilised. This is a highly attractive investment opportunity which meets Grainger's strict investment criteria and will further boost Grainger's investments in the Midlands.

The transaction is subject to the satisfaction of certain conditions which are expected to be met in the next few weeks. The transaction will become unconditional and then considered fully secured. Construction is expected to commence shortly thereafter, with completion targeted for H2 2023.

Helen Gordon, Chief Executive of Grainger, said:

"This acquisition in Derby is an exciting addition to our growing portfolio of high-quality rental homes in the Midlands, and our first scheme in Derby, a city which meets our strict investment criteria. Demand for high-quality rental homes in the city continues to grow, and this scheme will add greater scale to our Midlands cluster, 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

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

ACQSFAFWEEFSEEI

(END) Dow Jones Newswires

May 13, 2021 02:15 ET (06:15 GMT)

Grainger (LSE:GRI)
Historical Stock Chart
From Mar 2025 to Apr 2025

Grainger (LSE:GRI)
Historical Stock Chart
From Apr 2024 to Apr 2025