Grainger PLC (LON:GRI) acquired the Forge in Newcastle, a build-to-rent project of 283 rental apartments plus a commercial unit for £57mln from Moorfield Real Estate Fund III.
Based in Newcastle, this is Grainger's first purpose build-to-rent investment in its home city.
The Forge, completed in 2019, offers 3,500 sq. ft. of resident amenity space, including an onsite gym, residents lounge and flexible co-working spaces.
Grainger’s acquisition comes as another build-to-rent specialist Sigma Capital was acquired by a consortium funds run by property investor PineBridge Benson Elliot, highlighting the spike in demand for private rented sector (PRS) projects.
Grainger said the purchase price represents a gross yield of around 6.25%.
Helen Gordon, Chief Executive of Grainger, said: "We are very pleased to have acquired a stabilised build-to-rent opportunity that meets Grainger's high standards and is located in our home city of Newcastle.
“The Forge is proven as a great place to live, and, provides us with immediate rental income, further boosting our ambitious growth plans."