Grainger, the UK's largest listed residential landlord, has snapped up a 132-flat Build To Rent scheme in Southampton for £27m.
The project involves forward funding the investment, which is expected to generate a gross yield of over 6.5 per cent after completion which is anticipated in late 2020.
A statement from Grainger to its shareholders describes the investment as “highly attractive ... with strong future prospects.”
In addition to its share of the rental income, Grainger will receive management fees, supplementing its overall returns.
"Today's acquisition is confirmation of our ability to continue to source new and exciting [Build To Rent] investment opportunities in attractive locations with compelling returns. Southampton is a target location for Grainger” explains Helen Gordon, the firm’s chief executive.
A Southampton council spokesman describes the scheme as being “part of the transformation of this part of the city centre, which is currently undergoing significant redevelopment.”
The Grainger scheme is the second large BTR development in Southampton.