Grainger to buy build-to-rent development in Leeds for £40m

FTSE 250 listed residential landlord Grainger is to buy a private sector build-to-rent development on the Former Yorkshire Post gateway site from YP Real Estate.

Grainger agreed to a forward purchase agreement conditional on YP Real Estate securing planning consent for the development and its completion expected in 2019.

Once the properties are fully let it is anticipated to have an annual return on investment of about 7%.

The site in Leeds city centre, one of the company's target cities for investment which also includes Manchester, Birmingham, Bristol and London, will comprise of 242 purpose built rental homes, 3,211 square foot of commercial space, 72 car parking spaces and 3,600 square foot of amenity space.

Grainger chief executive Helen Gordon, said: "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."