Grainger, the UK's largest listed residential landlord, said on Thursday that it has exchanged contracts to forward fund and acquire Merrick Place, a 401-home build-to-rent development scheme in Southall, West London, for £141 mln (€166 mln).
In addition to the 401 PRS homes at Merrick Place, 18,116 sq ft (1,685 m2) of office space, 3,541 sq ft of flexible commercial floorspace, 5,253 sq ft of internal residents' amenity and over 17,000 sq ft of external space is to be delivered.
Located adjacent to Southall Station, including the new Crossrail station, the scheme forms part of a wider development to be delivered by Network Homes with Henry Construction as the appointed contractor.
Construction of Merrick Place is expected to commence in December 2021, with practical completion targeted in mid-2025. The scheme, including the commercial element, is forecast to generate a gross yield on cost of 5.75% once fully let and stabilised.
In line with Grainger's cluster strategy, Merrick Place builds on Grainger's existing West London portfolio, which includes Kew Bridge Court comprising 100 homes. In addition, Grainger is pursuing Southall Sidings, a build-to-rent scheme of 460 homes which is located nearby to Merrick Place and recently received planning consent, and which forms part of Grainger's partnership with TfL, via its Connected Living London JV.
Helen Gordon, Chief Executive Officer of Grainger, said: 'Merrick Place is an excellent addition to our existing portfolio in and around West London and will benefit from both operational efficiencies and opening of Crossrail. This acquisition marks a further exciting investment for Grainger as we continue to deliver on our strategy in the fast-growing UK build-to-rent sector.'
