28th Nov 2019 09:02
(Alliance News) - Grainger PLC on Thursday said it will invest GBP55.5 million to forward fund a build-to-rent development in the Canning Town area of east London.
The property company said it will forward fund a 132-home private rented sector development in the Hallsville Quarter development at Canning Town. The scheme, which also includes 11,000 square feet commercial space, will be developed by Linkcity, with Bouygues UK the building contractor.
The new scheme will be Grainger's third project in Canning Town and will strengthen the company's existing cluster of private rented sector development in east London. Construction on the new scheme is expected to start in late 2021.
Grainger expects the new development to generate a gross yield on cost of 5.5% once stabilised, with completion anticipated in late 2024.
Helen Gordon, chief executive, said: "We are pleased to further strengthen our London presence with this acquisition, which will deliver 132 high quality homes for rent in one of our top target cities. Upon completion of this project, Grainger's east London cluster will comprise 748 purpose-built homes, providing scale and operational efficiencies."
Grainger shares were up 2.3% at 288.30 pence each in London on Thursday morning.
By Tapan Panchal; [email protected]
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