Grainger acquires its third build-to-rent investment in Bristol for £128m
A part of Bdaily’s feature week, the Property Market, we look to Grainger plc, the UK’s largest listed residential landlord. Today Grainger plc announces that it has exchanged conditional contracts to forward fund and acquire the build-to-rent element of the second phase of ‘Redcliff Quarter’ in Bristol.
Grainger has agreed to acquire the scheme from Redcliff MCC LLP, backed by ICG Real Estate in partnership with Madison Cairn. Winvic Construction Limited has been appointed as contractor for the scheme. Winvic built Grainger’s Brook Place development in Sheffield and is also delivering the Copper Works in Cardiff for Grainger.
The site is located within the central Redcliff district of Bristol and forms part of the second and final phase of ‘Redcliff Quarter’, a wider residential-led, mixed use masterplan development. The scheme is a nine-minute walk from Bristol Temple Meads rail station.
Construction is expected to commence in Q3 2022, with practical completion of the final element targeted for early 2025. It is anticipated that the scheme, including the commercial element, will generate a gross yield on cost of 6 per cent once fully let and stabilised.
In line with Grainger’s cluster strategy, Redcliff Quarter builds on Grainger’s existing Bristol portfolio, which includes Hawkins & George, comprising 194 build-to-rent homes, and Millwrights Place which will comprise 231 build-to-rent homes when complete in early 2024.
Helen Gordon, chief executive officer of Grainger, said, “we are very pleased to acquire our third build-to-rent scheme in Bristol which will further strengthen our city cluster, bringing our total investment in the city to nearly 900 homes when complete and driving operational efficiencies, whilst also enabling us to deliver 94 new affordable homes via Grainger Trust, our in-house affordable housing arm.”
Jai Patel, managing director of ICG Real Estate, added, “ICG is proud to have been involved with the Redcliff regeneration since 2015, most recently securing a planning consent for 468 residential units in partnership with Madison Cairn, and working with Bristol City Council.”
Aneil Handa, managing director of Madison Cairn commented, “there is a serious under-supply of homes in Bristol. By working in partnership with ICG Real Estate and Grainger we have been able to secure planning permission for a revised Redcliff Quarter scheme that saw a substantial increase in the number of homes delivered on the site, compared with the previous consent.
Paul Hawkey, associate in Knight Frank’s Residential Capital Markets team, said, “the sale of Redcliff Quarter is a landmark deal for the city of Bristol rarely do opportunities such as these become available on the open market.”
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