UK residential landlord Grainger is set to acquire a 375-unit build-to-rent development project in Salford, a metropolitan borough of Greater Manchester, for £80 mln (€87 mln).
The London-listed company has agreed to purchase the scheme at Gore Street near the Manchester district of Spinningfields, subject to planning permission, from Euro Car Parks and the English Cities Fund.
Grainger will forward-fund the project, a joint venture between UK Land & Property and Sir Robert McAlpine known as UKLP Gore Street will develop the site, and Sir Robert McAlpine will also be the contractor.
The project is expected to complete in 2020. It will offer 375 private rental homes through a mix of apartments and townhouses, and provide a range of amenities for residents.
It is forecast to generate a gross yield of around 7% once fully let.
PRS
Greater Manchester is a key target for Grainger's private rental scheme investment strategy due to its strong economic prospects and growth potential.
Grainger said its latest acquisition in the area builds on its existing investments of more than 1,200 rental homes in the North West and its £100 mln investment at Clippers Quay in Salford to create 614 new rental homes where construction is well underway and first completions are expected in the 2018 financial year.
