Grainger acquires three-block portfolio in Manchester

Listed residential landlord Grainger has acquired a stabilised portfolio of three blocks in Manchester, comprising 192 private rented sector homes, for £26m, it announced on Friday.

The FTSE 250 company said the portfolio has been acquired from Cabot Square Capital, and it expects the investment to generate a gross yield on cost of approaching 7%.

Manchester was a “key city” for Grainger's private rented sector investment strategy, its board explained, due to its strong economic prospects and growth potential.

The investment would also benefit from Grainger's existing local management platform.

“We are pleased today to announce our latest investment in one of our key target locations, Manchester, which delivers 192 high quality rental homes, building on our existing portfolio in and around the area, leveraging off our operational platform and local management office,” said chief executive Helen Gordon.

Grainger also noted that it would be announcing its full year financial results on 30 November.