Grainger reveals first Nottingham PRS deal

Grainger has revealed fresh details of a 348-home development in Nottingham, which it is forward-funding in a £55.6m deal. The project, on Queens Road next to the railway station, was one of four highlighted by the build-to-rent group earlier this week when it announced a share placing that raised £186.7m. That money, alongside debt, has given Grainger new funding of about £305m, which it said would let it accelerate its strategy in the private rented sector. Grainger will acquire the development from Blocwork, a 50:50 joint venture between Network Rail and developer Bloc Group set up to develop rail-side sites. The group expects the investment to deliver a gross yield on cost of more than 7% The deal is Grainger’s first investment in Nottingham. Chief executive Helen Gordon said the company had been “keen to invest in [the city] for some time due to its strong market characteristics and growth prospects”. Once the deal completes, which is expected in the coming months, construction is expected to begin during the second half of the year. The homes are then likely to be leased by early 2024. Knight Frank acted for the vendor. Alongside this transaction, Grainger has said its new funding will be used on acquisitions in Birmingham, Cardiff and London. To send feedback, e-mail tim.burke@egi.co.uk or tweet @_tim_burke or @estatesgazette