Grainger plc (LON:GRI), the UK’s largest listed residential landlord with over 8,200 operational rental homes, today announces that construction has commenced at its latest private rented sector (PRS) development at Hale Wharf in Tottenham Hale, London. Today’s news follows the announcement in November 2018 of the exchange of contracts between Grainger and Waterside Places, a joint venture between Muse Developments and the Canal & River Trust, for Grainger to forward fund and acquire a building within the wider Hale Wharf scheme.
Grainger will deliver 108 new modern homes and up to 2,000 sq.ft of resident amenity space, designed specifically for the rental market. The scheme complements Grainger’s two other nearby PRS development schemes, Apex House (163 homes) and Seven Sisters Regeneration scheme (196 homes), also in the London Borough of Haringey.
These three schemes will provide Grainger with significant scale in this part of London totalling 467 new homes, reflecting the company’s strategy to have clusters of assets within close proximity to each other to support operational efficiencies.
Construction is expected to complete in Q2 of 2021, and once fully let and stabilised the c.£41m scheme is anticipated to deliver a gross yield on cost of between 5.5-6%.
Helen Gordon, Chief Executive of Grainger, said:
“Today is another step forward in Grainger’s ambitious plans to deliver thousands of new homes across the UK, specifically for renters. Since setting out our plans in 2016, we have committed £1.9bn of investment into the UK private rented sector, and our investment plans continue unabated, with strong market fundamentals underpinning a strong and growing demand for renting in the UK.
“We are pleased with the swift progress to commence construction at Hale Wharf, as well as the progress made across our other two PRS development schemes in Haringey. Last week saw the topping out of our 22 storey PRS development, Apex House, and earlier in the year we received confirmation from the Secretary of State that the compulsory purchase order required for our Seven Sisters scheme can proceed. Across these three schemes we will be delivering 467 much needed new homes to this part of North London over the next two to three years.”
Nigel Franklin, Chairman at Waterside Places, said:
“We’re delighted to now be on site for the first phase at Hale Wharf, which will be delivered by McLaren Construction and look forward to working closely both with them and Grainger over the coming months. Our focus is to deliver high-quality urban waterfront schemes that deliver diverse and sustainable places.
“Hale Wharf is an exciting development at the heart of one of the Mayor of London’s Housing Zones. Once complete, the wider scheme will deliver up to 505 high-quality canal-side homes, extensive public realm improvements, along with a range of commercial and leisure space.”