Grainger, the UK’s largest listed residential landlord, has agreed to forward fund a 284 home, private rented sector development at Well Meadow in Sheffield for £42m.
The site is within close proximity to Sheffield city centre, with both the Kelham Island neighbourhood and the Royal Hallamshire Hospital a short walk away.
Grainger said the project builds on its existing portfolio of private rented sector investments in Sheffield. Brook Place, the 237 home Build to Rent development, is close by, which the firm said will provide scale and operational efficiencies in a Sheffield cluster.
The transaction is subject to the satisfaction of various conditions. Once these have been satisfied and the transaction becomes unconditional, which is anticipated in early 2020, the scheme will be fully secured and construction will begin.
Grainger expects its investment to generate a gross yield on cost of 7 per cent once stabilised, with practical completion anticipated in early 2022.
The firm said Well Meadow is a “highly attractive investment opportunity in a prominent Sheffield location that meets Grainger’s strict and disciplined investment criteria”.
Helen Gordon, chief executive of Grainger, said: “We are very pleased to further strengthen our Sheffield presence with this acquisition, which will deliver 284 high quality homes for rent in one of our target cities.
“With the city centre area undergoing significant regeneration, and housing demand supported by Sheffield’s strong graduate retention rates, we are confident that Well Meadow will prove to be a popular location to live.
“Upon completion of this project, Grainger’s Sheffield cluster will comprise 521 purpose-built private rented sector homes.”
Neil Patten, director of the site’s developer Panacea Property Development, said: “Following on from our successful delivery of phase one of this important regeneration area, we have liaised closely with Sheffield City Council to deliver institutionally backed build to rent accommodation in this key location for the city.
“Sheffield’s residential rental offer will undoubtedly be enhanced by purpose built, high quality build to rent accommodation and we are delighted to be working with the Grainger team to achieve this.”
The Well Meadow site is located close to the Well Meadow Conservation Area and will offer residents restaurants, bars and parks all within walking distance.
The 284 homes will be a mix of studios, one and two-bed apartments and will be directly managed by the FTSE-250 firm, with a round-the-clock, hotel-style concierge service.
To help create a genuine community, Well Meadow will also have a number of shared spaces including a communal lounge and gym where the on-site Grainger team will host a calendar of free residents’ events throughout the year.