Grainger acquires build to rent scheme in £32m deal

Grainger, the listed residential landlord, has exchanged contracts with Abode Hallam and agreed to forward fund and acquire a private rented sector (PRS) build to rent development in Sheffield for around £32m.

The company said that Eccy Village, comprising 237 new purpose built PRS homes, is expected to generate a gross yield on cost of over 7% once stabilised, with completion anticipated by the end of 2019.

Abode Hallam will develop the site to Grainger’s specification and Winvic Construction, a Midlands-based contractor, will construct the scheme.

Sheffield is a key target city for Grainger’s PRS investment strategy due to its strong economic prospects and growth potential, the company said.

Helen Gordon, chief executive of Grainger, said: “This is the fourth significant PRS acquisition we’ve announced in the past two months, demonstrating our continued success in finding and securing highly attractive investments in the private rented sector. We are pleased to have secured Eccy Village in Sheffield, which is one of our key target locations.

“This scheme will see us deliver 237 new high quality, purpose built rental homes, in this growing, vibrant city.”