Finzels Reach £60m deal will create 200 new homes at city development
GRAINGER Plc has struck a £60million deal to acquire a new development that will allow it to build more than 200 homes in Bristol.
The Newcastle-based company, which describes itself as the UK’s largest listed landlord, has bought the development site for £63.1million from Cubex Land.
The deal will allow Grainger to construct 231 build-to-rent properties in the city, which has previously been named as one of Grainger’s key target locations. Grainger expects the investment to generate a gross yield of 6%.
Helen Gordon, chief executive of Grainger, said: “This acquisition in Bristol is an exciting addition to our growing portfolio of high-quality rental homes in Bristol, a city which meets our strict investment criteria.
“Demand for high-quality rental homes in Bristol continues to grow, and this scheme will add greater scale to our city cluster, improving our ability to drive efficiencies while delivering a great service to our customers.”
The site was originally bought by Cubex in 2016 on behalf of the Fiera Real Estate Opportunity Fund IV (UK), a joint venture by Fiera Real Estate that is exclusive to clients of CBRE Global Investment Partners (CBRE GIP). Following Grainger’s acquisition Cubex will continue as its development manager.
Peter Walford, director of Cubex, said: “We are delighted to have closed our second high profile funding deal with Grainger in Bristol to provide additional new homes to our award winning Finzels Reach development. This next phase will also incorporate 66 new affordable homes alongside Halo, our 116,000 sq ft office building which we substantially pre-let to Osborne Clarke and forward funded with Tesco Pension Trust earlier this year.”
Grainger’s latest deal will complement its existing property, Hawkins and George. The site was the first build-to-rent development in Bristol and is part of Cubex and Fiera Real Estate’s Finzels Reach Scheme. It includes 194 apartments across two buildings.
The new deal means Grainger will have 425 rental homes in Bristol.