£80m build-to-rent scheme in Salford to deliver 375 PRS homes
Grainger, the UK’s largest listed residential landlord has acquired a build-to-rent development in Salford for £80m from Euro Car Parks and the English Cities Fund.
The deal which is conditional on the development at Gore Street, near Manchester’s Spinningfields, receiving planning permission will see 375 PRS homes delivered.
Grainger will forward fund the project and UKLP Gore Street Ltd – a joint venture between UK Land & Property and Sir Robert McAlpine Enterprises – will develop the site. Sir Robert McAlpine will also be the contractor.
The site is anticipated to complete in 2020. It will deliver the homes homes through a mix of apartments and townhouses, and provide a range of amenities for residents.
It is anticipated to generate a gross yield of about7% once fully let.
Once the transaction completes, it will become part of Grainger’s secured pipeline, which currently stands at about £500m.
Greater Manchester is a key target for Grainger’s PRS investment strategy due to its strong economic prospects and growth potential.
This acquisition builds on Grainger’s existing investments in the area of over 1,200 rental homes in the North West and its £100m investment at Clippers Quay in Salford to deliver 614 new rental homes where construction is well underway and first completions are expected in FY18.
Helen Gordon, chief executive of Grainger, said: “We are pleased today to announce this significant £80m investment to deliver 375 new, high quality, purpose built rental homes in Salford, near Spinningfields, building on our existing portfolio in and around Manchester city centre and leveraging our operational platform and Manchester regional office.”
Simon Parker, managing director of UK Land and Property, said: “We are delighted that the hard work and support of key partners including Salford City Council, The English Cities Fund and Sir Robert McAlpine Enterprises has contributed to the opportunity for us to develop this high quality landmark scheme for Grainger plc.
“The project will become a focal point to the highly successful Chapel Street regeneration initiative in Salford.”