30 September 2016
("Grainger", the "Company", the "Group")
Grainger commit to landmark build-to-rent scheme on
Leeds Riverside to deliver c.250 PRS homes
Grainger plc, the UK's largest listed residential landlord, announces that it has conditionally agreed to forward purchase a Private Rented Sector (PRS), build-to-rent development, on the former Yorkshire Post Gateway site ("Yorkshire Post") in Leeds city centre, for c.£40m from YP Real Estate.
This scheme, once complete, will comprise 242 new, purpose-built rental homes, over 18 floors, c.3,600 square feet of amenity space, a 3,277 square foot commercial unit and 72 car parking spaces.
The scheme is expected to complete in 2019 and is anticipated to generate a gross yield on cost approaching 7% once fully let.
The forward purchase agreement is conditional on the vendor securing final, detailed planning consent for the scheme and successful completion of the development.
Leeds is one of five key target cities for Grainger's PRS investment strategy, alongside Bristol, Manchester, Birmingham and London.
Helen Gordon, Chief Executive of Grainger, said:
"We are pleased to announce this sizeable PRS build-to-rent acquisition that will deliver 242 new, purpose-built rental homes in Leeds city centre. Leeds is a vibrant city which holds all the key characteristics of our PRS investment strategy, including a large professional workforce and significant economic growth potential."
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
Ginny Pulbrook / Geoffrey Pelham-Lane
Tel: +44 (0) 20 3757 4992/4985
This information is provided by RNS