Grainger starts work on latest Leeds investment
Landlord Grainger has started work on its latest investment in Leeds after satisfying certain contractual conditions.
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Grainger's scheme, known as Fabrik, will result in the building of a 216-home private rental development and has been forward funded for a total of £34m.
Construction of the scheme, which has full planning consent, was anticipated to wrap up in late 2021, with Grainger expecting the investment to begin to generate a gross yield on cost of over 6.5% once stabilised.
The FTSE 250 company said the investment opportunity was "highly attractive" and meets its "strict and disciplined investment criteria", building on its existing portfolio of private rental sector investments in Leeds, providing scale and operational efficiencies.
Chief executive Helen Gordon said: "We are pleased to announce start on site of our latest investment in Leeds, one of our target regional cities, which will deliver 216 new high quality, purpose-built rental homes.
"Fabrik will complement our 242-home Yorkshire Post development, also in Leeds, thereby providing over 500 PRS units in Leeds once these schemes are delivered."
As 0900 BST, Grainger shares were up 0.60% to 246.06p.