08/01/2017 | Press release | Distributed by Public on 08/01/2017 00:08
1 August 2017
('Grainger', the 'Company', the 'Group')
- £30.5M PRS ACQUISITION -
139 NEW HOMES TO RENT DEVELOPMENT SCHEME
IN CENTRAL MILTON KEYNES
ACQUIRED BY GRIP REIT JV
Grainger plc, the UK's largest listed residential landlord, announces that its GRIP REIT joint venture with APG has unconditionally agreed to forward fund and acquire a 139 home build to rent, private rented sector (PRS) development in Milton Keynes from the High Street Group for £30.5m.
The c.90k sqft scheme in the centre of Milton Keynes comprises:
· 139 homes;
· Resident amenity and commercial space;
· 170 bicycle storages spaces; and
· 120 parking spaces.
United Living is the appointed contractor for the scheme.
GRIP REIT is focused on PRS investments in London and the South East and is 25% owned by Grainger and 75% owned by APG. Grainger is the property, asset and development manager for the REIT. This is a highly attractive investment in central Milton Keynes with strong future prospects and is well aligned to GRIP's predominantly London based investment focus. In addition to the projected gross yield on cost of over 6% once operational, Grainger receives management fees, supplementing its overall returns.
This acquisition follows Grainger's recent announcement of its investment in a 236 home build to rent scheme in Pontoon Dock, London, in partnership with the Local Pensions Partnership.
Helen Gordon, Chief Executive of Grainger, said:
'We are pleased to announce another successful acquisition of an attractive PRS asset in a highly desirable location with a strong and growing rental market, this time through our GRIP PRS REIT in partnership with our long standing partner, APG. Our ambitious investment plan continues at pace with c.£500m of Grainger's own capital committed to new PRS investments.'
Gary Forrest, Chairman of The High Street Group, said:
'As the build to rent, or private rented sector, continues to grow due to demand for homes outstripping supply, we developed a plan to create a community with a modern village feel that will cater particularly for the needs of aspiring young professional people in Milton Keynes.
'We are delighted that such a successful and reputable specialist in PRS as Grainger is now acquiring the site to take the project forward.'
Pinsent Masons acted as legal adviser to Grainger.
For further information:
Helen Gordon/ Vanessa Simms/ Kurt Mueller
London Office Tel: +44 (0) 20 7940 9500
Newcastle Office Tel: +44 (0) 191 261 1819
Camarco (Grainger PR)
Ginny Pulbrook / Geoffrey Pelham-Lane
Tel: +44 (0) 20 3757 4992/4985
Notes to editor:
The High Street Group
The High Street Group, based in Newcastle upon Tyne and founded by Gary Forrest in 2006, has grown to become a developer of large scale PRS and luxury residential developments across England and Scotland. It employs around 100 people.