Grainger, the UK's largest listed residential landlord, has acquired a Private Rented Sector (PRS), build-to-rent development at Finzels Reach in Bristol for £45.7 mln (€54 mln) from a vehicle backed by clients of Palmer Capital and Cubex Land.
The site, which has planning consent, will deliver 194 private rental homes across two blocks and is expected to complete at the beginning of 2019.
'We are pleased today to announce further significant progress in our PRS investment strategy by agreeing to forward fund a 194 home, build-to-rent scheme at Finzels Reach in Bristol, a location which we believe has strong market prospects and excellent growth potential,' commented Helen Gordon, chief executive of Grainger.
Grainger will forward fund the project, while Cubex Land will be the developer and Willmott Dixon will be the contractor.
It is anticipated to generate a gross yield on cost of c.7% once fully let in 2019.
'This is a fantastic inward investment in Bristol, by a well-respected and experienced landlord. Our contemporary styled apartments are perfectly placed to serve the rental customer and will complement the rest of our Finzels Reach apartments, hotel, offices and leisure,' said Gavin Bridge, director of Cubex Land.
Grainger added that Bristol was a key target city for its PRS investment strategy due to its strong economic fundamentals, growth prospects and the strength of its housing market.
