Grainger PLC on Thursday said it has agreed to forward fund and buy the build-to-rent element of a Bristol development that is made up of 374 private rental homes, as well as 94 affordable homes and six commercial units.

Grainger acquired the development from Redcliff MCC LLP, backed by ICG Real Estate in partnership with Madison Cairn.

The £128 million acquisition is expected to start building the new homes in the third quarter of 2022, with completion targeted for early 2025, Grainger said. It expects that the scheme, including the commercial element, will generate a gross yield on cost of 6% once fully let and stabilised.

‘The site is located within the central Redcliffe district of Bristol and forms part of the second and final phase of ’Redcliff Quarter’, a wider residential-led, mixed use masterplan development,’ the Newcastle, England-based residential property developer added.

The residential landlord said Northampton-based Winvic Construction Ltd has been appointed as contractor for the scheme. Winvic built Grainger’s Brook Place development in Sheffield and is also delivering the Copper Works in Cardiff for Grainger.

‘We are very pleased to acquire our third build-to-rent scheme in Bristol which will further strengthen our city cluster, bringing our total investment in the city to nearly 900 homes when complete and driving operational efficiencies, whilst also enabling us to deliver 94 new affordable homes via Grainger Trust, our in-house affordable housing arm,’ said Chief Executive Officer Helen Grainger.

Grainger shares were 0.1% higher at 281.00 pence each in London on Thursday morning.

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