9th May 2018 10:40
LONDON (Alliance News) - UK residential landlord Grainger PLC said Wednesday that its joint venture has acquired a build-to-rent development in Southampton for GBP27 million.
GRIP REIT, the company's joint venture with investment vehicle APG, has agreed to forward fund and acquire 132 homes build to rent development from National Regional Property Group.
The investment is expected to generate a gross yield of over 6.5% once stabilised, with completion anticipated in late 2020, Grainger said.
Grainger will receive management fees in addition to its share of the rental income, supplementing its overall returns.
National Regional Property Group will develop the site and PMC Construction, a Hampshire-based contractor, will construct the scheme.
GRIP REIT is focused on private rented sector investments in London and the South East and is 25% owned by Grainger and 75% owned by APG. Grainger is the property, asset and development manager for the REIT.
Shares in Grainger were trading 0.2% lower at 315.80 pence in morning trade.
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