Huge PRS scheme acquired for £55.6m

Private rental giant Grainger has agreed to acquire a 348-home PRS scheme in Nottingham for £55.6 million.

The company will also forward fund the development at Queens Road, which will carried out by Blocwork – a 50/50 joint venture between Network Rail and Bloc Group which was set up to develop rail side sites throughout the UK.

This is Grainger’s first investment in Nottingham, which is a key target city for its national build-to-rent and PRS investment strategy.

Planning permission for the scheme was granted in late 2019 subject to conditions.

Construction on the scheme, which sits adjacent to Nottingham railway station, is expected to begin in H2 2020. It is expected to be leased and stabilised by early 2024.

Knight Frank acted for the vendor in securing the acquisition.

Helen Gordon, chief executive of Grainger, said: “We are pleased to agree this significant new investment for housing in Nottingham, a city we have been keen to invest in for some time due to its strong market characteristics and growth prospects. Nottingham has a vibrant community, with strong and growing demand for renting, but lacks high quality, professionally managed rental housing with amenities.

“Our rental housing scheme on the Queens Road will represent great value for renters with long-term, flexible tenancies, professional on-site resident services team, high speed broadband, and communal spaces and amenities such as a lounge and gym. We look forward to bringing this scheme forward swiftly with Blocwork Group.”

Richard Thomas, director at Blocwork, added: ”We are delighted to be working with Grainger on this project. We have been developing ideas to redevelop the site for some time. This has resulted in a viable development coming forward on this site that that will add to the vibrancy of this part of Nottingham and complete the redevelopment of the station which has become a great regional transport hub.”