£34m forward funding secured for PRS scheme

Forward funding of £34m has been secured for a 216 home PRS development at Fabrik in Leeds.

Listed residential landlord, Grainger, announced the deal completion on the markets this morning. The scheme, known as Fabrik, is a 216-home PRS development by Leeds-based Oakapple Group with Tolent Construction as the building contractor.

Oakapple Group was last month given the green light for the Fabrik scheme in the south bank area of Leeds city centre. It will see Oakapple develop a twelve storey block with basement car park and residents facilities on the Sweet Street site.

The site forms part of the Holbeck Urban Village, a key area of the south bank regeneration initiative.

Construction of the scheme, which has full planning consent, has recently commenced with completion anticipated for late 2021. Grainger expects this investment to generate a gross yield on cost of over 6.5% once stabilised.

This is a highly attractive investment opportunity and meets Grainger’s strict and disciplined investment criteria. The scheme builds on Grainger’s existing portfolio of PRS investments in Leeds, providing scale and operational efficiencies.

Helen Gordon, Chief Executive of Grainger, said: “We are pleased to announce start on site of our latest investment in Leeds, one of our target regional cities, which will deliver 216 new high quality, purpose built rental homes. Fabrik will complement our 242-home Yorkshire Post development, also in Leeds, thereby providing over 500 PRS units in Leeds once these schemes are delivered.”

Philip Taylor, Chairman of Oakapple Group, added: “Oakapple are delighted to be working with Grainger on delivery of this project. As a Leeds business we are particularly pleased to see a major institution committing further to our City. It is a vote of confidence in the South Bank and hopefully a catalyst for further schemes to come forward in the area”.

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