15th May 2018 09:40
LONDON (Alliance News) - Property investor Grainger PLC said Tuesday it acquired a 261 home build-to-rent scheme in Buckinghamshire for GBP63.0 million from Peveril Securities Ltd.
Grainger has conditionally agreed to buy the project in Milton Keynes which will be developed into a 261 home private rented sector site.
The scheme has planning consent but the deal depends on the completion of a new YMCA building adjacent to the site. This will be part of the first phase of the wider development of the area. THe YMCA building is expected to complete in the third quarter of 2019.
Grainger said it expects the home to be completed by the second half of 2021. On completion, it expects the investment to have a yield on cost of 6.3%.
"We are pleased to announce our latest investment in Milton Keynes, one of our key target locations, which will deliver 261 new high quality, purpose built rental homes," Grainger Chief Executive Officer Helen Gordon said. "This new investment will complement Silbury Boulevard, our other PRS build to rent scheme of 139 homes in Milton Keynes, which we own in our GRIP REIT joint venture, and is currently under construction."
Peveril will develop the site with Mayforth acting as development manager. Bowmer & Kirkland are acting as the contractors.
Shares in Grainger were 0.2% higher at 317.40 pence on Tuesday.
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