TIDMGRI
RNS Number : 1443L
Grainger PLC
11 January 2021
11 January 2021
Grainger plc
("Grainger", the "Company", the "Group")
Acquisition
Grainger acquires a 231-home forward fund build to rent scheme
with Cubex & Fiera Real Estate in Bristol
Grainger plc, the UK's largest listed residential landlord with
8,941 operational rental homes and a further 8,950 in its pipeline,
has acquired a 231-home forward fund build to rent development in
Bristol for c.GBP63.1m, with Cubex Land as development manager,
backed by Fiera Real Estate. Willmott Dixon Construction Limited
has been appointed as the contractor.
Leading Bristol developer Cubex purchased the site in 2016 on
behalf of Fiera Real Estate Opportunity Fund IV (UK), a
programmatic joint venture by Fiera Real Estate that is exclusive
to clients of CBRE Global Investment Partners (CBRE GIP).
Bristol is a key target city for Grainger and, in line with
Grainger's cluster strategy, this new investment generates further
economies of scale in conjunction with Grainger's nearby asset,
Hawkins & George.
Hawkins & George, part of Cubex and Fiera Real Estate's
Finzels Reach Scheme, was Bristol's first build-to-rent development
launched in the city. The purpose-built accommodation includes 194
apartments across two buildings. Across both schemes, Grainger will
have 425 rental homes in the city.
Construction is expected to commence in January 2021, with
construction completion targeted for H2 2023.
Grainger expects this investment to generate a gross yield on
cost of c.6% once stabilised. This is a highly attractive
investment opportunity which meets Grainger's strict investment
criteria and will further boost Grainger's investments in Bristol,
a key target city.
Helen Gordon, Chief Executive of Grainger, said:
"This acquisition in Bristol is an exciting addition to our
growing portfolio of high-quality rental homes in Bristol, a city
which meets our strict investment criteria. Demand for high-quality
rental homes in Bristol continues to grow, and this scheme will add
greater scale to our city cluster, improving our ability to drive
efficiencies while delivering a great service to our
customers."
Peter Walford, Director of Cubex, said:
"We are delighted to have closed our second high profile funding
deal with Grainger in Bristol to provide additional new homes to
our award winning Finzels Reach development. This next phase will
also incorporate 66 new affordable homes alongside Halo, our
116,000 sq ft office building which we substantially pre-let to
Osborne Clarke and forward funded with Tesco Pension Trust earlier
this year."
Steven Wright, Director of Fiera Real Estate, said :
"The sale represents the completion of the second phase of
Finzels Reach where Cubex and Fiera Real Estate have developed (or
realised) over GBP400 million worth of assets. This has converted a
derelict under-utilised part of central Bristol into a thriving hub
delivering a vibrant 24/7 community in over 400,000 sq ft of
commercial space (including two BREEAM "Outstanding" offices
buildings), 400+ apartments and a new hotel. We look forward to
securing similar new opportunities on behalf of the Fiera Real
Estate Opportunity Fund V, which is active and currently
investing."
Knight Frank acted for Fiera Real Estate and Cubex Land.
-ENDS-
About Fiera Real Estate
Fiera Real Estate's UK division is an investment management
firm, which focuses on both creating and actively managing core
assets for investors. The UK business was founded in 1992 (as
Palmer Capital) and directly manages over GBP760 million Assets
Under Management (AUM).
Its vertically integrated business model has been achieved by
backing ten regional property companies in the UK. This has created
a pan UK platform of partnerships that allows investors to access
some of the best deal flow and entrepreneurial managers within the
centralised framework provided by Fiera Real Estate.
Fiera Real Estate is wholly owned by Fiera Capital Corporation,
a leading multi-product investment-management firm with more than
USD125 billion of AUM. Fiera Capital provides Fiera Real Estate
with access to global investment market intelligence, which
enhances its ability to innovate within a framework that emphasizes
risk assessment and mitigation.
About Cubex Land
Cubex is a dynamic commercial and residential property
developer, funder and investor operating from offices in Bristol
and London. Cubex has acquired, funded and developed a wide range
of properties across the South West of England and South Wales
including offices, residential, retail, industrial, distribution,
hotels, leisure, motor trade and healthcare. Its portfolio is
diverse not only in terms of market sector but also by geography,
size, value and complexity. Cubex is the developer behind
award-winning Finzels Reach in Bristol, one of the South West's
most significant mixed-use developments.
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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