Grainger and Bloc team up for 2,000-home Network Rail deal

Grainger will partner with Network Rail and Bloc Group to deliver more than 2,000 rental homes. The news came as the UK’s largest listed residential landlord, with more than 10,200 operational rental homes, announced results for “an outstanding year of record delivery”. It said its Blocwork joint venture would unlock development on sites in major cities across Britain, using land from Network Rail’s extensive portfolio. Network Rail, Bloc Group and Grainger recently completed the Barnum, a 348-home build-to-rent scheme in Nottingham, with Blocwork as developer and Grainger as investor. Grainger funded the development and will operate it on completion. Under the partnership, Network Rail will bring forward potential sites from its property portfolio for the Blocwork jv to develop. Once planning approval is secured, Grainger will forward fund and ultimately own and operate the schemes. Grainger chief executive Helen Gordon said: “Having successfully delivered the Barnum, a build-to-rent scheme of 348 homes, with the Network Rail and Bloc joint venture, we see this as a great opportunity to collaborate further and deliver a potential 2,000 much-needed high-quality rental homes across the country, aligned to our city strategy. This partnership supports Grainger’s ambitious growth plans and provides access to superbly located and well-connected sites.” Bloc development director Richard Thomas said the Barnum had “demonstrated how well this partnership works together”. Robin Dobson, group property director at Network Rail, said: “This partnership is the natural next step to accelerate the delivery of new homes for communities. As the largest owner of infrastructure-led brownfield land in the UK, the creation of this partnership demonstrates our continued drive to work with strategic partners to unlock opportunities to deliver well designed and well-connected homes and regenerate towns and cities.” Today Grainger announced it delivered 1,640 homes during the 2023 financial year. The group’s rental income was up 12% to £96.5m, with like-for-like growth of 8%, against last year’s 4.8%. EPRA earnings rose by 41% to £39.8m, while adjusted earnings rose 4% to £97.6m. It declared an IFRS profit before tax of £27.4m, far below last year’s £298.6m. Grainger said this was due to the prior year one-off £81.2m valuation gain from the transfer of trading assets in preparation for REIT conversion, along with a lower valuation performance in FY23. It also announced the acquisition of a 65-home BTR scheme in Tottenham Hale, N17, from Waterside Places, a jv between Canal & River Trust and Muse Places, next to its 108 homes at Windlass Apartments. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews Photo © Camarco PR