Grainger plc acquires £60m Milton Keynes development scheme
Today (May 15), Grainger plc has announced that it has conditionally agreed to acquire a 261-home private rented sector (PRS), build-to-rent development in Milton Keynes from Peveril Securities Limited for around £63m.
Peveril Securities Limited will develop the site, Mayforth will act as development manager and Bowmer and Kirkland will be the contractor.
The scheme has planning consent, and the transaction is conditional on the completion of a new adjacent YMCA as part of the first phase of the wider development which is expected in Q3 2019 prior to construction starting on site.
Grainger expects the investment to generate a gross yield on cost of c.6.25 per cent once stabilised, with completion anticipated in the second half of 2021.
This is a highly attractive investment in central Milton Keynes with strong future growth prospects and meets Grainger’s strict and disciplined investment criteria.
Helen Gordon, chief executive of Grainger, said: “We are pleased to announce our latest investment in Milton Keynes, one of our key target locations, which will deliver 261 new high quality, purpose built rental homes.
“This new investment will complement Silbury Boulevard, our other PRS build to rent scheme of 139 homes in Milton Keynes, which we own in our GRIP REIT joint venture, and is currently under construction.”
Ralph Jones, director of Peveril Securities Limited, added: “We are delighted to be working with Grainger to provide a further 261 residential units in Milton Keynes, and we hope it will be first of many opportunities in the future for Peveril, Bowmer and Kirkland and Grainger to work together.”