UK listed residential landlord Grainger has exchanged conditional contracts to forward fund and acquire the build-to-rent element of the second phase of 'Redcliff Quarter' in Bristol which comprises 374 private rental (PRS) homes, as well as 94 affordable homes and six commercial units.
Grainger has agreed to acquire the scheme for £128 mln (€150 mln) from Redcliff MCC, backed by ICG Real Estate in partnership with Madison Cairn. Winvic Construction Limited has been appointed as contractor for the scheme.
In addition to the 374 PRS homes and 94 affordable homes at Redcliff Quarter, the scheme includes a total of 5,900 sq. ft of internal residents' amenity space; 21,200 sq. ft of external amenity space; 8,500 sq. ft of commercial space; and 31 car parking spaces. A further six commercial units totalling 15,800 sq. ft have also been acquired as part of the transaction.
The site is located within the central Redcliffe district of Bristol and forms part of the second and final phase of 'Redcliff Quarter', a wider residential-led, mixed use masterplan development.
Construction is expected to commence in Q3 2022, with practical completion of the final element targeted for early 2025. It is anticipated that the scheme, including the commercial element, will generate a gross yield on cost of c.6% once fully let and stabilised.
In line with Grainger's cluster strategy, Redcliff Quarter builds on Grainger's existing Bristol portfolio, which includes Hawkins & George, comprising 194 build-to-rent homes, and Millwrights Place which will comprise 231 build-to-rent homes when complete in early 2024.