284 home rental scheme planned for city

Listed residential landlord Grainger has agreed to forward fund a 284-home PRS (“Build to Rent”) development at Well Meadow in Sheffield for about £42m.

The new homes will be constructed by Panacea Property Development.

The site is close proximity to Sheffield city centre, with both the Kelham Island neighbourhood and the Royal Hallamshire Hospital a short walk away.

This project builds on Grainger’s existing portfolio of PRS investments in Sheffield, with Brook Place, the 237 home Build to Rent development also close by.

The transaction is subject to the satisfaction of various conditions. Once these have been satisfied and the transaction becomes unconditional, anticipated in early 2020, the scheme will be fully secured, and construction will start.

Grainger expects this investment to generate a gross yield on cost of about 7% once stabilised, with practical completion anticipated in early 2022.

Helen Gordon, Chief Executive of Grainger, said: “We are very pleased to further strengthen our Sheffield presence with this acquisition, which will deliver 284 high quality homes for rent in one of our target cities.

“With the city centre area undergoing significant regeneration, and housing demand supported by Sheffield’s strong graduate retention rates, we are confident Well Meadow will prove to be a popular location to live.

“Upon completion of this project, Grainger’s Sheffield cluster will comprise 521 purpose-built PRS homes.”

Neil Patten, Director at Panacea Property Development, said: “Following on from our successful delivery of phase one of this important regeneration area, we have liaised closely with Sheffield City Council to deliver institutionally backed build to rent accommodation in this key location for the city.

“Sheffield’s residential rental offer will undoubtedly be enhanced by purpose built, high quality build to rent accommodation and we are delighted to be working with the Grainger team to achieve this.”