Grainger is in discussions to forward fund 194 rental homes at Palmer Capital’s Finzels Reach in Bristol.
The three blocks, Georges Wharf, Hawkins Lane North and Hawkins Lane South, have a potential GDV of around £50m. They were put up for sale last year through Savills, and attracted bids from both housebuilders and rental investors looking to gain a foothold in Bristol.
A variation of conditions was submitted to Bristol Council in December 2015 to adapt the blocks for the PRS. The plans, which increased the unit numbers from 168 to 194, were approved in April.
Grainger will take ownership of the units upon completion, if a deal is agreed. It is understood no contractor has yet been appointed.
Grainger has been looking at the Bristol rental market for some time, where a high level of affluence and a housing shortage have combined to make the rental market appealing.
However, limited development opportunity in the city centre, and equally competitive office and student markets have made development it expensive. Grainger was close last year to agreeing a deal on the ambulance station site on Castle Street with Bouygues, though this fell through.
Finzels Reach has a long history. The 4.7-acre site was the former home of Courage Brewery. Plans were drawn up before the property crash for a major mixed-use scheme with over 350 flats, 250,000 sq ft of office space, and a significant leisure component.
However, LPA Receivers at Savills were appointed in 2013, and in August and November Palmer Capital bought the debt, and brought it forward with Cubex, a Bristol company they own.
In February this year, the pair secured a 82,000 sq ft prelet of the 115,000 sq ft Bridgewater House to EDF Energy, before its £56m sale in April to a private investor. In August 2015, AXA Real Estate Investment Managers completed a forward funding deal for the 168-bedroom Premier Inn hotel for £17.8m.
All parties declined to comment.
See also:
EDF Energy takes Bristol space
Palmer gains control of Finzels
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