Grainger forward funds £77m PRS site

Grainger has agreed to forward-fund a £77m build-to-rent development at Exchange Square in Birmingham. The 373-home site will be developed by Nikal Limited. The deal is subject to a number of conditions, including securing planning consent, which will be lifted after approval is secured. Grainger said the scheme will form part of a new urban village at Exchange Square. It expected the investment to generate a gross yield in excess of 6.5%, with completion anticipated in 2022. Helen Gordon, chief executive of Grainger, said: “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 circa £105m, including our other PRS development scheme, Gilders Yard in the Jewellery Quarter.” Nick Payne, managing director of Nikal, added that the developer aims to begin work in mid-2019. To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette