Grainger buys Salford Quays site for £98.7m

Residential property owner and manager Grainger has exchanged contracts to buy Clippers Quay in Salford Quays, near Manchester, for around £98.7m.

Grainger said the property, which will deliver 600 new private rented homes and commercial and amenity space, fits with the group’s strategy to focus on the UK private rented sector (PRS) over the next three to five years.

The purpose-built rental development, which has detailed planning consent, is expected to begin construction in spring this year.

Grainger will acquire the completed development from Amstone Ventures on phased payment terms over the course of the development using existing financing facilities.

Chief executive Helen Gordon said: "This is one of the largest build to rent developments outside of London and a major boost to our focus on growing our private rented sector portfolio.

Once fully let, it should deliver over £7.5m of gross rent per annum. The scheme is of a scale that will enable Grainger to implement its full service private rental model.”

Grainger announced last week that it plans to invest over £850m in private sector rented assets as it looks to drive rental income growth and sell off its non-core operations.