Grainger PLC Acquisition (0502O)
September 30 2019 - 2:02AM
UK Regulatory
TIDMGRI
RNS Number : 0502O
Grainger PLC
30 September 2019
30 September 2019
Grainger plc
("Grainger", the "Company", the "Group")
Acquisition
Grainger agrees to forward fund and acquire a 284 home, PRS
development at Well Meadow in Sheffield, for c.GBP42m
Grainger plc, the UK's largest listed residential landlord and
leader in the UK private rented sector (PRS), today announces that
it has agreed to forward fund a 284-home PRS development (known as
'build to rent') at Well Meadow in Sheffield for c.GBP42m. The
developer is Panacea Property Development.
The site is positioned within close proximity to Sheffield city
centre, with both the Kelham Island neighbourhood and the Royal
Hallamshire Hospital being 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, providing scale and operational efficiencies in a Sheffield
cluster.
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 commence. Grainger expects
this investment to generate a gross yield on cost of c.7% once
stabilised, with practical completion anticipated in early 2022.
This is a highly attractive investment opportunity in a prominent
Sheffield location that meets Grainger's strict and disciplined
investment criteria.
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 that 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."
For further information:
Grainger plc
Kurt Mueller
London Office Tel: +44 (0) 20 7940 9500
Camarco (Grainger PR)
Ginny Pulbrook / Geoffrey Pelham-Lane
Tel: +44 (0) 20 3757 4992/4985
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END
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