UK listed residential landlord Grainger has agreed to forward fund and acquire a 373-home private rental sector (PRS) development at Exchange Square in Birmingham for around £77 mln (€86 mln).
The developer is private UK property firm Nikal.
'We are delighted to announce today’s acquisition at Exchange Square in Birmingham for around £77 mln, which will deliver 373 homes for rent in a great central location in one of our top target cities,' said Helen Gordon, chief executive of Grainger.
'Birmingham has exciting growth plans and we are pleased to be part of it. Once Exchange Square is complete, Grainger will have 529 purpose-built PRS homes in Birmingham worth c.£105 mln, including our other PRS development scheme, Gilders Yard in the Jewellery Quarter,' Gordon added.
The scheme will form part of a new urban village at Exchange Square, according to Grainger, which expects the investment to generate a gross yield on cost in excess of 6.5% once stabilised, with completion anticipated in 2022.
'We are delighted to be working with Grainger on the final phase of Exchange Square,' added Nick Payne, managing director, Nikal.
'The announcement is made after months of careful design to create an exemplary PRS development. We hope work will begin in mid 2019,' Payne concluded.