Grainger scheme given £185m boost
PROPERTY investor and landlord Grainger is to accelerate the development of a 36-storey apartment complex in Birmingham after raising £185 million.
In 2018, Grainger agreed a £77 million forward-funding deal for the second phase of Exchange Square in the city centre which will also mean it acquires the scheme once it is completed.
The project, which received planning permission in December, comprises 375 apartments to rent on land in The Priory Queensway, adding to the 603 units delivered on the same site in phase one.
Phase two will also include a new bar and Premier Inn hotel but Grainger is not involved in the funding of this part of the scheme.
Grainger’s share placing will mean up to 61.2 million new shares being issued, representing just under ten per cent of the company, and will support four new residential developments across the country.
Chief executive Helen Gordon said: “We have real momentum in the business and now is the right time to invest for the future and increase our investment in our secured pipeline.
“This placing will enable us to bring forward £246 million of investment for four new schemes, three of which are in strong regional cities, delivering 1,160 new homes, as well as expand our planning and legal pipeline, accelerating the delivery of net rental income and earnings growth. The outlook for the UK’s private rented sector is positive, with growing customer demand and structural undersupply supporting the investment case.
“With our deep knowledge and experience in the market, we are able to deliver longterm, sustainable returns through our targeted investment strategy, coupled with our strong operational platform.”