Residential landlord Grainger on Tuesday said that it had conditionally agreed to acquire a 261 home private rented sector, build to rent development in Milton Keynes from Peveril Securities Limited for about £63m.
Grainger said it expected the investment to generate a gross yield on cost of circa 6.25% once stabilised, with completion anticipated in the second half of 2021.
Peveril Securities Limited would develop the site, Mayforth would act as development manager and Bowmer and Kirkland would be the contractor.
While the scheme had planning consent, 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 the third quarter of next year prior to construction starting on site, the firm said.
‘This is a highly attractive investment in central Milton Keynes with strong future growth prospects and meets Grainger’s strict and disciplined investment criteria,’ Grainger said.
Source: Interactive Investor