(Sharecast News) – Residential landlord Grainger said on Monday that it has bought a 231-home forward fund build to rent development in Bristol for around £63.1m, with Cubex Land as development manager, backed by Fiera Real Estate.
Willmott Dixon Construction Limited has been appointed as the contractor.
Grainger noted that Bristol is a key target city for the company and said that in line with its cluster strategy, this new investment generates further economies of scale in conjunction with its nearby asset, Hawkins & George.
Construction is expected to begin this month, with completion targeted for the second half of 2023.
Grainger said it expects the investment to generate a gross yield on cost of around 6% once stabilised.
Chief executive Helen Gordon said: “This acquisition in Bristol is an exciting addition to our growing portfolio of high-quality rental homes in Bristol, a city which meets our strict investment criteria. Demand for high-quality rental homes in Bristol continues to grow, and this scheme will add greater scale to our city cluster, improving our ability to drive efficiencies while delivering a great service to our customers.”