Grainger buys Nottingham development for ?55m
By Frank Prenesti
Date: Tuesday 18 Feb 2020
(Sharecast News) - Private rental home provider Grainger said it had agreed forward fund and acquire a 348-home build-to-rent development in Nottingham from Blocwork LLP for ?55.6m.
Blocwork, a 50:50 joint venture between Network Rail and Bloc Group, has been setup to develop rail side sites nationally, and is the developer of the scheme.
This deal is Grainger's first investment in the city, a key target for its national build-to-rent and private rental investment strategy, identified for "strong market fundamentals as a location with deep rental demand and strong economic growth prospects", the company said on Tuesday.
Planning permission for the scheme was granted in late 2019 and construction is expected to start in the second half of the year with the scheme expected to be leased and stabilised by early 2024.
Grainger said it expected the investment to generate a gross yield on cost of more than 7% once stabilised.
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