Grainger buys third scheme in Canning Town
Grainger has agreed to forward fund its third scheme in Canning Town, E16, for £55.5m.
It will acquire the 132-flat Hallsville Quarter from developer Linkcity.
Hallsville Quarter is just 100 metres from Grainger’s first scheme in Canning Town at Argo Apartments and adjacent to its second in Hallsville Quarter.
Grainger has agreed to forward fund its third scheme in Canning Town, E16, for £55.5m.
It will acquire the 132-flat Hallsville Quarter from developer Linkcity.
Hallsville Quarter is just 100 metres from Grainger’s first scheme in Canning Town at Argo Apartments and adjacent to its second in Hallsville Quarter.
The third phase is Grainger’s fifth scheme with Linkcity and contractor Bouygues.
It brings the total number of flats in Canning Town to 412 and builds on further schemes in east London in Barking and Pontoon Dock.
The acquisition is expected to complete in early 2020, with construction to commence in 2021.
Grainger expects the investment to generate a gross yield on cost of 5.5% once stabilised, with completion in 2024.
Helen Gordon, chief executive of Grainger, said: “The Canning Town area is undergoing significant regeneration, and we know from our experience with Argo Apartments that this is a very popular location to live, with such great access to the wider city.
“Upon completion of this project, Grainger’s east London cluster will comprise 748 purpose-built homes, providing scale and operational efficiencies.”
The acquisition follows a strong year for Grainger, now with a BTR portfolio of £1.526m, compared to £591m a year ago. The rental giant has a portfolio of 5,597 operational homes and a pipeline boosting a further 9.104 homes.
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