Grainger - which last week committed to spend £850m on the burgeoning UK Build To Rent sector - has announced that it has purchased a key Manchester scheme for £98.7m.
It has exchanged contracts to buy Clippers Quay in Salford Quays; the property, which will deliver 600 new private rented homes and commercial and amenity space, fits with the group's strategy to focus on Build To Rent over the next three to five years.
The purpose-built rental development, which has detailed planning consent, is expected to begin construction in the next few weeks.
Grainger will acquire the completed development from Amstone Ventures on phased payment terms over the course of the development using existing financing facilities.
"This is one of the largest Build To Rent developments outside of London and a major boost to our focus on growing our private rented sector portfolio. Once fully let, it should deliver over £7.5m of gross rent per annum.The scheme is of a scale that will enable Grainger to implement its full service private rental model" says the firm’s chief executive Helen Gordon.
The company’s trading statement to the City last week declared that it would re-allocate resources to expand into Build To Rent; it has already divested itself of Retirement Solutions, an equity release arm of Grainger, to free resources and money.