Newcastle-based Grainger plc, the UK’s largest listed residential landlord, said it exchanged contracts with Abode Hallam Limited and agreed to forward fund and acquire a private rented sector (PRS) build to rent development called Eccy Village in Sheffield for £32 million.

The development comprises 237 new purpose built PRS homes.

Grainger said it expects the investment to generate a gross yield on cost of more than 7% once stabilised, with completion anticipated by the end of 2019.

Abode Hallam Limited will develop the site to Grainger’s specification and Winvic Construction, a Midlands based contractor, will construct the scheme.

Grainger said Sheffield is a key target city for Grainger’s PRS investment strategy due to its strong economic prospects and growth potential and meets Grainger’s investment criteria.

Grainger CEO Helen Gordon said: “This is the fourth significant PRS acquisition we’ve announced in the past two months, demonstrating our continued success in finding and securing highly attractive investments in the private rented sector.

“We are pleased to have secured Eccy Village in Sheffield, which is one of our key target locations.

“This scheme will see us deliver 237 new high quality, purpose built rental homes, in this growing, vibrant city.”