Grainger to forward fund and acquire a build to rent scheme in Sheffield

FTSE 250 residential landlord Grainger has exchanged contracts with Abode Hallam Limited and agreed to forward fund and acquire a private rented sector (PRS), build to rent development, Eccy Village, in Sheffield, for around £32m.

The investment is expected to generate a gross yield on cost of more than 7% once stabilised, with completion due by the end of next year. Abode will develop the site to Grainger's specification and Midlands-based contractor Winvic Construction will build the scheme.

Grainger said Sheffield is a key target city for its PRS investment strategy due to its strong economic prospects and growth potential.

Chief executive Helen Gordon said: "This is the fourth significant PRS acquisition we've announced in the past two months, demonstrating our continued success in finding and securing highly attractive investments in the private rented sector. We are pleased to have secured Eccy Village in Sheffield, which is one of our key target locations. This scheme will see us deliver 237 new high quality, purpose built rental homes, in this growing, vibrant city."