Grainger forward-funds £28m development in Birmingham

Listed residential landlord Grainger has exchanged contracts with Blackswan Property to forward-fund and acquire a private rented sector build-to-rent development in Birmingham, it announced on Thursday.

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The FTSE 250 firm said the development, Gilder's Yard, would comprise 156 new purpose built PRS homes, for total consideration of £28m.

Grainger said it expected the investment to generate a gross yield on cost over 7% once stabilised.

Blackswan Property would develop the site and Shaylor - a Midlands-based contractor - would construct the scheme.

Birmingham is a key target city for Grainger's private rented sector investment strategy, the board explained, due to its strong economic prospects and growth potential, building on its existing local management platform.

“We are pleased today to announce our latest investment in one of our key target locations, Birmingham, which will deliver 156 new high quality, purpose built rental homes, building on our existing portfolio in and around the area and leveraging off our operational platform,” Grainger chief executive Helen Gordon said.

Grainger also confirmed it would be announcing its full-year financial results on 30 November.