North East listed developer Grainger plc has hailed an “exceptional” half year for residential developments as it revealed its Southhall’s Merrick Place Scheme acquisition after a £141m deal. The Newcastle based company is the largest listed residential developer in UK with 9,109 operational rental homes. It has done a conditional contracts exchanged to forward fund and obtain Merrick Place, a build-to-rent 401 home development scheme in Southall, West London.
Grainger revealed that they will use proceeds from the recent equity placing to make the acquisition. Additionally, the 401 private rental sector homes, Merrick Place will include 18,116sqft of office area, commercial area of 3,541sqft and 5,253sqft of amenity space for the residents. External space of over 17,000sqft will also be developed. Southhall’s Merrick Place Scheme is set to be developed for the next four years adjacent to Southall Station, with work set to start by December. It formed the wider project to be constructed by Network Homes.
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Residential Acquisition.
Grainger, which has further 8,851 in its £2.1bn pipeline, revealed proceeds from the recent equity placing will placed on the acquisition. The Southhall’s Merrick Place Scheme is expected to yield a gross of around 5.75% when fully acquired. The chief executive officer of Grainger, Helen Gordon stated that the attractive investment opportunity meets Grainger’s disciplined investment criteria, while also developing on its current West London portfolio.
Ms Gordon added: “We are delighted to partner with Network Homes to developing 401 new, high quality, purpose built rental houses for Merrick Place in Southall. “Merrick Place is a superb addition to the current portfolio in and around West London and its important for both opening of cross rail and operational efficiencies. The Southhall’s Merrick Place Scheme marks a another exciting investment for Grainger as we go on with the company’s strategy in the fast-growing build-to-rent sector in UK.”
