Apartments set for former Yorkshire Post site after £40m deal

RESIDENTIAL landlords Grainger plc have snapped up the Yorkshire Post Gateway site for £40m.

The listed company has committed to developing 242 purpose-built rental apartments over 18 floors at the site that is has acquired from YP Real Estate.

There have been attempts to get a build-to-rent development going in Leeds, and Grainger is targeting the city alongside Bristol, Manchester, Birmingham and London for its PRS investment plans.

It will provide around 3,600 sq ft of amenities, a 3,277 commercial unit and 72 car parking spaces. The scheme is expected to complete in 2019.

Grainger said it would generate a gross yield on cost approaching 7% once fully let.

The forward purchase agreement is conditional on the vendor securing final planning consent for the scheme and successful completion of the development.

Helen Gordon, chief executive of Grainger, said: “We are pleased to announce this sizeable PRS build-to-rent acquisition that will deliver 242 new, purpose-built rental homes in Leeds city centre. Leeds is a vibrant city which holds all the key characteristics of our PRS investment strategy, including a large professional workforce and significant economic growth potential.”

Rachel Cowper led a team of specialist residential development lawyers from Walker Morris advising the seller. Pinsent Masons, led by Natalie Harris, advised Grainger. 

Paul Fox of Fox Lloyd Jones which acted as development managers on the scheme said: “There has been much talk about the drive for build to rent schemes in Leeds and other key provincial cities to respond to changing market dynamics and it is exciting that this will be one of the first real schemes to come out of the ground in Leeds.

“With such a high calibre operator on board we are very positive over the detailed planning dialogue ahead and excited to be kick starting a high quality regeneration of an iconic Leeds site.”

 

 

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