11th Jun 2021 08:59
(Alliance News) - Grainger PLC on Friday announced the purchase of build-to-rent asset The Forge, in a GBP57 million deal.
The Forge is an apartment building in Newcastle with 283 rental apartments and ground floor commercial space.
The FTSE 250-listed residential property business said that the purchase price represents a gross yield of around 6.3%, which it expects to manage in line with its standard rental margin of over 75%.
Grainger has a portfolio of 9,109 operational rental homes and a further 8,851 in its GBP2.1 billion pipeline. The new purchase will be its first in the city of its headquarters, Newcastle.
Chief Executive Helen Gordon commented: "We are very pleased to have acquired a stabilised build-to-rent opportunity that meets Grainger's high standards and is located in our home city of Newcastle. The Forge is proven as a great place to live, and, provides us with immediate rental income, further boosting our ambitious growth plans."
Grainger shares were down 0.4% at 289.39 pence each in London on Friday morning.
By Will Paige; [email protected]
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