Grainger joint venture buys Kew Bridge estate

Grainger’s joint venture with APG has acquired Kew Bridge Court for approximately £57.3m.

The FTSE 250 company announced on Tuesday that GRIP, a private rented sector (PRS) fund it has a 25% stake in, acquired the estate from a partnership managed by Residential Land.

The 2.2 acre site has 94 flats, 4 houses and 80 car parking spaces, and has development potential including planning consent for five additional units.

The company said it expects to achieve gross rental income of £3m per year as improvements are made.

Chief executive Helen Gordon said Kew Bridge Court is a high quality PRS portfolio in a very attractive and highly sought after area of London.

“This portfolio demonstrates further acceleration of growth in our PRS business and the support we have from our investment partner, APG, to continue to expand GRIP's portfolio in London and the South East.

“This was a rare opportunity to acquire a stabilised asset of scale, in one of our prime target markets."

The acquisition follows Grainger's strategy update in January, where it said it is aiming to become the UK's leading private landlord.

Grainger said it plans to invest over £850m in the private rented sector over the next three to five years.