Grainger’s GRIP REIT joint venture with APG has agreed to forward fund a 139-home build-to-rent development in Milton Keynes from the High Street Group for £30.5m.
Projected gross yield for the scheme is over 6% once operational, and Grainger will also receive management fees, supplementing its overall returns.
GRIP REIT focuses on rental investments in London and the South East. It is 25% owned by Grainger and 75% owned by APG, with Grainger acting as asset and development manager for the REIT.
The 90,000 sq ft scheme, in the centre of Milton Keynes, will include amenity space and commercial elements. United Living is the appointed contractor.
Helen Gordon, chief executive of Grainger, said: “We are pleased to announce another successful acquisition of an attractive PRS asset in a highly desirable location with a strong and growing rental market, this time through our GRIP PRS REIT in partnership with our long-standing partner, APG.”
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