UK listed residential landlord Grainger has conditionally agreed to acquire a 261-unit PRS build-to-rent development in the English town of Milton Keynes from Peveril Securities for £63 mln (€72 mln).
Peveril Securities will develop the site, while Mayforth will act as development manager and Bowmer and Kirkland will be the contractor.
'This new investment will complement Silbury Boulevard, our other PRS build to rent scheme of 139 homes in Milton Keynes, which we own in our GRIP REIT joint venture, and is currently under construction,' said Helen Gordon, CEO of Grainger.
The scheme has planning consent, and the transaction is conditional on the completion of a new adjacent YMCA as part of the first phase of the wider development which is expected in Q3 2019 prior to construction starting on site.
Grainger said it expected the investment to generate a gross yield on cost of 6.25% once stabilised, with completion anticipated in the second half of 2021.
'We are delighted to be working with Grainger to provide a further 261 residential units in Milton Keynes, and we hope it will be first of many opportunities in the future for Peveril, Bowmer and Kirkland and Grainger to work together,' concluded Ralph Jones, director of Peveril Securities Limited.
Grainger is also targeting Bristol as part of its PRS strategy, where Finzels Reach is currently under development.
