Member Article

Grainger honours PRS portfolio pledge with £98.7m Salford Quays acquisition

Newcastle-headquartered Grainger plc, the UK’s largest listed residential property owner and manager, has exchanged contracts to acquire Clippers Quay, a c.£98.7m build to rent, PRS development scheme in Salford Quays, Manchester.

The project will deliver over 600 new private rented homes, along with commercial and amenity space.

This transaction follows on from Grainger’s Strategy Update on 28 January 2016,in which Grainger set out its ambition to become the UK’s leading private landlord and its plan to invest over £850m in the UK private rented sector (PRS) over the next 3-5 years.

As one of the largest PRS operators in the UK, with c.3,600 PRS homes under management, this scheme further builds on Grainger’s existing platform.

The purpose-built rental development, which has detailed planning consent, is expected to begin construction in spring this year. The transaction is pending the finalisation of a construction contract and the scheme will be built over three phases taking two to three years.

Grainger will acquire the completed development from Amstone Ventures on phased payment terms over the course of the development using existing Company financing facilities.

Helen Gordon, Chief Executive of Grainger, said: “This is one of the largest build to rent developments outside of London and a major boost to our focus on growing our private rented sector portfolio.

“At over 600 homes, Clippers Quay adds further scale to Grainger’s established PRS platform. Once fully let, it should deliver over £7.5m of gross rent per annum. The scheme is of a scale that will enable Grainger to implement its full service private rental model.

“Clippers Quay is a highly attractive place to invest, driven by its connectivity and proximity to Manchester and MediaCityUK. As the UK’s largest listed residential landlord, Grainger is well placed to leverage its long-established operational platform to continue offering best-in-class homes to renters across all regions of the UK.”