Grainger signs on Engie Regeneration as main contractor for Newbury scheme
Listed residential landlord Grainger has appointed Engie Regeneration as the main contractor to its Newbury PRS scheme, which is expected deliver 232 new homes for rent and improved pedestrian access from Newbury train station to the town centre.
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The FTSE 250 company said construction on the scheme, being developed by Grainger in partnership with West Berkshire Council and Network Rail, was expected to begin before the end of the calendar year and complete in 2021.
It said the signing of the construction contract at Newbury signified an increase to Grainger's secured PRS investment pipeline by £61m.
Grainger expected the scheme to generate a gross yield on cost in excess of 6.25% once stabilised.
It described Newbury as an “attractive location” for investment, due to its “strong” employment and “well-serviced” transportation links, and with major improvement works underway by Network Rail.
“We are pleased to announce this key milestone for our Newbury PRS scheme, which increases our secured investment pipeline to over £800m,” said Grainger chief executive officer Helen Gordon.
“This scheme will deliver 232 high quality new homes for rent to Newbury, and it will significantly improve the gateway to Newbury and connection to the railway station and station amenities.”