Grainger to build Brum PRS scheme with Spitfire homes

Grainger is in talks to forward-fund its first purpose-built rental scheme in Birmingham with Spitfire Homes. The UK’s largest listed rental operator is to fund the housebuilder’s 230-flat scheme on Newhall Street in the city’s Jewellery Quarter. The scheme has a potential GDV of £45m, assuming an average flat value of £200,000. Despite having a extensive presence in Birmingham, Grainger would be developing its first block specifically for the rental market. Its other assets include 500 rental flats and homes around the city and a 10-acre land holding it bought with U+I, then Development Securities, around the new Curzon Street HS2 Station. It is understood to be looking at other sites in the city. Grainger has focused on regional development since chief executive officer Helen Gordon took up her post at the start of last year. It is developing 614 homes in Manchester at Clippers Quay, 194 homes in Bristol at Finzels Reach, and another 242 at the former Yorkshire Post site in Leeds. Spitfire is funded by partner IM Properties, and bought the Newhall Street site last October from Birmingham City Council. The scheme has been designed by Associated Architects. Birmingham is becoming increasingly attractive to residential developers. The first rental operators started moving into the city in 2015, and since then schemes have been agreed by LaSalle Investment Management, MODA/Apache, Atlas/Rockspring, Long Harbour and others. More recently, conventional housebuilders have come back to the city centre. Berkeley Group created a Birmingham arm, St Joseph in early 2016, while Barratt recently revealed plans for 800 homes on the Bristol Road. To send feedback, e-mail alex.peace@egi.co.uk or tweet @egalexpeace or @estatesgazette