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Grainger to buy 26-home PRS development in Milton Keynes for £63m

By James Wallace - Tuesday, May 15, 2018 9:52

Grainger, the UK listed residential landlord, has agreed to acquire a 261-home private rented sector (PRS), build-to-rent development in Milton Keynes from Peveril Securities Limited for c.£63m.

Peveril Securities will develop the site, while 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% once stabilised, with completion anticipated in the second half of 2021. Grainger said in a statement that this investment in central Milton Keynes offers the prospects of “strong future growth prospect”.

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, said: “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.”

James Wallace is a freelance consultant and can be reached via Linkedin or email: jawallace32@gmail.com

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