Grainger plc (LON: GRI), the UK’s largest listed residential landlord and leader in the UK private rented sector, today announced that it has agreed to forward fund a 284-home PRS development at Well Meadow in Sheffield for c.£42m. The developer is Panacea Property Development.
The site is positioned within close proximity to Sheffield city centre, with both the Kelham Island neighbourhood and the Royal Hallamshire Hospital being a short walk away. This project builds on Grainger’s existing portfolio of PRS investments in Sheffield, with Brook Place, the 237 home Build to Rent development also close by, providing scale and operational efficiencies in a Sheffield cluster.
The transaction is subject to the satisfaction of various conditions. Once these have been satisfied and the transaction becomes unconditional, anticipated in early 2020, the scheme will be fully secured, and construction will commence. Grainger expects this investment to generate a gross yield on cost of c.7% once stabilised, with practical completion anticipated in early 2022. This is a highly attractive investment opportunity in a prominent Sheffield location that meets Grainger’s strict and disciplined investment criteria.
Helen Gordon, Chief Executive of Grainger plc, said:
“We are very pleased to further strengthen our Sheffield presence with this acquisition, which will deliver 284 high quality homes for rent in one of our target cities. With the city centre area undergoing significant regeneration, and housing demand supported by Sheffield’s strong graduate retention rates, we are confident that Well Meadow will prove to be a popular location to live. Upon completion of this project, Grainger’s Sheffield cluster will comprise 521 purpose-built PRS homes.”
Neil Patten, Director at Panacea Property Development, said:
“Following on from our successful delivery of phase one of this important regeneration area, we have liaised closely with Sheffield City Council to deliver institutionally backed build to rent accommodation in this key location for the city. Sheffield’s residential rental offer will undoubtedly be enhanced by purpose built, high quality build to rent accommodation and we are delighted to be working with the Grainger team to achieve this.”