UK's largest listed residential landlord, Grainger, has acquired a fully-occupied 135-home build-to-rent property in Manchester's Northern Quarter for £31 mln (€37 mln).
The Astley was acquired from property investor M&G Real Estate who originally invested £27.6 mln (€32.8 mln) in the BTR project, which was completed in Q1 2019.
This purchase strengthens Grainger's existing portfolio in the region, which now totals approximately 1,700 rental homes and includes Clippers Quay at Salford Quays and The Filaments near Spinningfields.
The acquisition was funded through the company's asset recycling program. Grainger sold an older London property for £27 mln (€32.1 mln) to reinvest in The Astley, which offers higher returns and aligns with the company's strategic focus on Manchester.
Helen Gordon, CEO of Grainger, said: ‘The Astley is an excellent acquisition. A stabilized, income-producing, high-quality build-to-rent asset of 135 homes within our existing Manchester cluster, supported by our ongoing asset recycling programme. Today's acquisition is earnings accretive and reflects the increasing number of opportunities we are seeing in the market to acquire existing build-to-rent assets.’
The Astley offers a mix of one, two, and three-bedroom units and features a rooftop garden.
Grainger’s total property value amounts to £3.4 bn (€4.0 bn) from approximately 11,153 rental homes with a pipeline of 5,000 new homes under development.
