GRIP Unit Trust, an investment fund backed by Grainger and APG, has bought a new build to rent development for £33.25m.
The deal is the third collaboration between Grainger and Bouygues in the private rented sector, helping to build a pipeline of long term rental apartments for the listed landlord.
The project, which has yet to start construction, is being built by Bouygues Development in Canning Town, east London. It will deliver 134 one and two bedroom apartments in a 16 storey tower due for completion in summer 2017.
“This transaction builds on an established partnership between Bouygues Development and Grainger and is further evidence of our commitment to the UK private rented sector,” said Tracy Hartley, Grainger’s GRIP fund manager. “We now look forward to working alongside Bouygues and the London Borough of Newham to deliver this exciting new long-term development.”
“The demand for high-quality rented homes far outweighs supply, and PRS represents a long-term rental income and a stable yield for our investors. In line with our strategy, and with the financial support of Grainger and APG, GRIP will continue to explore further investment opportunities including build-to-rent, enabling us to offer the growing number of renters top-quality and professionally managed housing that puts the tenant first.”
Nicolas Guerin, Managing Director of Bouygues Development, added: “We are firm believers in the build-to-rent sector and the PRS tower at Hallsville Quarter underlines our ongoing commitment to deliver purpose-built, professionally-managed, and institutional-quality homes for communities in London.”
“Our strong partnership with Grainger brings together expertise in development, design, construction, property and asset management to create a formidable team. We will not only meet the aspirations of Londoners looking for a better answer to their rental needs, but also continue to work alongside our partners at the London Borough of Newham to drive the economic growth of this important new focal point for the local community of Canning Town.”