Acquisition

RNS Number : 5659B
Grainger PLC
11 June 2021
 

11 June 2021

Grainger plc

("Grainger", the "Company", the "Group")

 

 

Grainger acquires stabilised & immediately income enhancing

PRS asset in Newcastle for c.£57m

 

Grainger plc, the UK's largest listed residential landlord with 9,109 operational rental homes and a further 8,851 in its £2.1bn pipeline, has acquired The Forge, a stabilised income producing Build-to-Rent ("BTR") asset comprising 283 rental apartments and a ground floor commercial unit via a corporate acquisition for c.£57m from Moorfield Real Estate Fund III.

 

This is Grainger's first purpose built, BTR investment in its home city of Newcastle, where the company was established in 1912 and remains headquartered. Newcastle meets with Grainger's investment criteria as a target city in its national BTR and PRS growth strategy.

 

The Forge, completed in 2019, is the only stabilised BTR asset in Newcastle. In addition to the 283 residential apartments and commercial unit, the scheme offers 3,500 sq.ft of high-quality resident amenity space, including an onsite gym, residents lounge and flexible co-working spaces.

 

The asset is very well located on Forth Banks in the city centre, with a WalkScore of 91, described as a 'walker's paradise', with a wide range of amenities, local services and public transport links nearby. 

 

The purchase price represents a gross yield of c.6.25%, which Grainger expects to manage in line with its standard rental margin of over 75%.

 

Today's acquisition is in line with Grainger's stated investment strategy. Stabilised acquisitions, such as today's transaction, are one of three investment routes that Grainger employs, alongside forward funding developments and direct development. Opportunities for stabilised acquisitions, which are attractive because they deliver immediate income and accelerate Grainger's growth strategy, are however limited due to the relative immaturity of the institutional rental market in the UK and often do not meet Grainger's investment criteria, including ESG standards.

 

Helen Gordon, Chief Executive of Grainger, said:

 

"We are very pleased to have acquired a stabilised build-to-rent opportunity that meets Grainger's high standards and is located in our home city of Newcastle. The Forge is proven as a great place to live, and, provides us with immediate rental income, further boosting our ambitious growth plans."

 

 

 

-ENDS-

 

For further information:

 

Grainger plc

Kurt Mueller

London Office Tel: +44 (0) 20 7940 9500

 

Camarco (Grainger PR)

Ginny Pulbrook / Geoffrey Pelham-Lane

Tel: +44 (0) 20 3757 4992/4985

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
ACQFFFSFRVIILIL

Companies

Grainger (GRI)
UK 100

Latest directors dealings