Partner Article

Grainger agrees £80m deal to acquire Manchester PRS development

Newcastle-based residential landlord Grainger plc looks set to acquire another build-to-rent development, after conditionally agreeing an £80m deal on a site in Salford, Manchester,

Continuing to flex its muscles in the private rented sector (PRS), Grainger will forward fund the project following development owners Euro Car Parks and the English Cities Fund agreeing to sell.

The site, anticipated to complete in 2020, will deliver 375 private rental homes through a mix of apartments and townhouses.

Once this transaction completes, it will become part of Grainger’s secured pipeline, which currently stands at c.£500m.

Greater Manchester is a key target for Grainger’s PRS investment strategy due to its strong economic prospects and growth potential.

This acquisition builds on Grainger’s existing investments in the area of over 1,200 rental homes in the North West and its £100m investment at Clippers Quay in Salford to deliver 614 new rental homes where construction is well underway and first completions are expected in FY18.

Helen Gordon, Chief Executive of Grainger, said: “We are pleased today to announce this significant £80m investment to deliver 375 new, high quality, purpose built rental homes in Salford, near Spinningfields, building on our existing portfolio in and around Manchester city centre and leveraging our operational platform and Manchester regional office.”

UKLP Gore Street Limited (a joint venture between UK Land & Property and Sir Robert McAlpine Enterprises) will develop the site whilst Sir Robert McAlpine will also be the contractor.

Simon Parker, Managing Director of UK Land and Property, added: “We are delighted that the hard work and support of key partners including Salford City Council, The English Cities Fund and Sir Robert McAlpine Enterprises has contributed to the opportunity for us to develop this high quality landmark scheme for Grainger plc.

“The project will become a focal point to the highly successful Chapel St regeneration initiative in Salford.”

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