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Newcastle's Grainger follows £28m Birmingham acquisition with £26m Manchester investment

Newcastle-based Grainger, the UK’s largest listed residential landlord, has today announced the acquisition of another PRS development.

Following yesterday’s news of a c.£28m development in Birmingham, the firm has also acquired a stabilised portfolio of three blocks in Manchester, comprising 192 private rented sector (PRS) homes, for £26m.

Purchased from Cabot Square Capital, Grainger expects the investment to generate a gross yield on cost of approaching 7%.

Manchester is a key city for Grainger’s PRS investment strategy due to its strong economic prospects and growth potential. The investment will also benefit from Grainger’s existing local management platform.

Helen Gordon, Chief Executive of Grainger, said: “We are pleased today to announce our latest investment in one of our key target locations, Manchester, which delivers 192 high quality rental homes, building on our existing portfolio in and around the area, leveraging off our operational platform and local management office.”

Freddie Athill, Investment Director at Cabot Square Capital, added: “The TRIBE brand and portfolio represents the successful delivery of a modern product for renters seeking stylish, hassle-free and affordable living with a trustworthy landlord.

“The portfolio has performed extremely well since its launch in 2015 and we are pleased to complete this transaction with Grainger.”

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