Member Article

Newcastle’s Grainger plc in joint venture to acquire London PRS development

Newcastle-based Grainger plc, one of the UK’s largest listed residential landlords, has entered a joint venture with not-for-profit organisation the Local Pensions Partnership (LPP) to acquire a hotly-tipped Private Rented Sector (PRS) development at London’s Pontoon Dock.

Consisting of 236 homes, the build-to-rent scheme is being developed by Linkcity in after being procured through the Greater London Authority’s (GLA) London Development Panel.

The site forms a new gateway to the Thames Barrier Park in the London Borough of Newham and will deliver 236 homes, with the majority specifically built for the private rented sector.

Vesta, a joint venture (‘JV’) between Grainger and LPP has entered into a forward funding agreement with Linkcity to acquire 154 of the units.

In addition, Grainger, through its For Profit Registered Provider of social housing, will acquire the remaining 82 units (35%) of the scheme which will be affordable homes.

Grainger will have a 20% equity share of Vesta and will generate long-term fees for management of the PRS units, while LPP will hold the remaining 80% stake. LPP is managing the investment on behalf of the London Pensions Fund Authority (LPFA).

Helen Gordon, Chief Executive of Grainger, said: “We are pleased to announce this innovative partnership between Grainger and the Local Pensions Partnership and Grainger’s third project with Linkcity and Bouygues UK, which is unlocking a 0.69 acre site owned by the Greater London Authority to deliver 236 new high-quality rental homes in Pontoon Dock in East London.

“This investment builds on Grainger’s £850 million PRS investment plan and provides us with a local cluster of over 470 rental homes in East London, giving us significant scale.”

James Murray, Deputy Mayor for Housing and Residential Development, added: “I am pleased to see this development is making significant progress, building much-needed new and affordable homes for rent on land owned by the Mayor’s office.

“This project shows the public and private sectors, funded in large part by pension investments, working together to help build the homes our city so desperately needs.”