Grainger has exchanged conditional contracts to forward fund and acquire Merrick Place, a build-to-rent development scheme in Southall, west London, for £141m.
Proceeds from Grainger’s recent equity placing will be used to acquire the 401 home development.
Located adjacent to Southall Station, which includes the new Crossrail station, Merrick Place will also comprise 18,116 sq ft of office space, 3,541 sq ft of flexible commercial floorspace, 5,253 sq ft of internal residents’ amenity and over 17,000 sq ft of external space.
Construction is expected to commence in December 2021, with practical completion targeted in mid-2025. It is anticipated that the scheme, including the commercial element, will generate a gross yield on cost of around 5.75% once fully let and stabilised.
The acquisition builds on Grainger’s existing west London portfolio, which includes Kew Bridge Court comprising 100 homes. In addition, Grainger is pursuing Southall Sidings, a build-to-rent scheme of 460 homes which is located nearby to Merrick Place and recently received planning consent, and which forms part of Grainger’s partnership with TfL, via its Connected Living London JV.
Helen Gordon, chief executive, said: “We are pleased to bring forward Merrick Place to deliver 401 new, high quality, purpose built rental homes in Southall. Merrick Place is an excellent addition to our existing portfolio in and around West London and will benefit from both operational efficiencies and opening of Crossrail. This acquisition marks a further exciting investment for Grainger as we continue to deliver on our strategy in the fast-growing UK build-to-rent sector.”
GRI : Grainger acquires London residential scheme for £141m