Grainger acquires PRS development in Bristol

Residential landlord Grainger has agreed to acquire a private build-to-rent development in Bristol for £45.7m.

Grainger will forward fund the private rental sector project at Finzels Reach, while Cubex Land will be the developer and Willmott Dixon will be the contractor.

The site has planning consent for 194 private rental homes across two blocks and is expected to complete at the beginning of 2019.

Grainger said it anticipated the site will generate a gross yield on cost of circa 7% once it is fully let in 2019.

"Bristol is a key target city for Grainger's PRS investment strategy due to its strong economic fundamentals, growth prospects and the strength of its housing market," the FTSE 250 company said.