Grainger lines up £305m PRS spree

Build-to-rent behemoth Grainger has launched a share placement to fuel a £305m acquisitions spree. The fundraise will push its secured pipeline over £1bn, with secured schemes worth £978m and £91m in planning and legals. Grainger will place up to 61.2 million new ordinary shares, representing around 10% of the company’s issued share capital. It is seeking to raise £185m, leveraged with around £120m of debt, to secure new projects and fund its secured pipeline in Birmingham; Canning Town, London; Cardiff and Nottingham. The BTR developer will commit £59m to new schemes which are in planning and legals. A further £246m will go to building out its secured developments to deliver 1,160 flats, bringing the total to 4,369. It will fund 373 flats at Exchange Square in Birmingham (pictured), 348 at Queens Road in Nottingham, 307 at Capital Quarter in Cardiff and 132 at the third phase of Canning Town. These schemes are expected to deliver additional net rental income of £16m on completion. Helen Gordon, chief executive, said: “We have real momentum in the business and now is the right time to invest for the future and increase our investment in our secured pipeline. “The outlook for the UK’s private rented sector is positive, with growing customer demand and structural undersupply supporting the investment case. With our deep knowledge and experience in the market, we are able to deliver long-term, sustainable returns through our targeted investment strategy, coupled with our strong operational platform.” Grainger currently has around 9,000 operational flats in a portfolio valued at £2.6bn, and a pipeline of 9,000 further new flats. JP Morgan Cazenove and Numis Securities are joint bookrunners on the fundraise. To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette