Newcastle-based Grainger plc, the UK’s largest listed residential landlord, said it agreed to forward fund and acquire a 373-home private rented sector development at Exchange Square in Birmingham for £77 million.

The developer is Nikal Limited. 

The transaction is subject to a number of conditions that the developer must meet, including securing planning consent. 

The scheme will form part of a new urban village at Exchange Square.

“The building will be a prestigious landmark for those arriving at the Birmingham HS2 Curzon Street Station, which is directly opposite the site, providing a gateway into the city centre and will link residents to London in 49 minutes,” said Grainger.

“Grainger expects this investment to generate a gross yield on cost in excess of 6.5% once stabilised, with completion anticipated in 2022.

“This is a highly attractive investment opportunity in a prominent, central location in Birmingham and meets Grainger’s strict and disciplined investment criteria.

“The scheme builds on Grainger’s existing portfolio of PRS investments in Birmingham which will provide scale and operational efficiencies once practical completion has been achieved.  “

Grainger CEO Helen Gordon said: “Birmingham has exciting growth plans and we are pleased to be part of it.

“Once Exchange Square is complete, Grainger will have 529 purpose-built PRS homes in Birmingham worth c.£105m, including our other PRS development scheme, Gilders Yard in the Jewellery Quarter.”

Waheed Nazir, corporate director, Birmingham City Council said: “The skyline in Birmingham City Centre is changing rapidly and investment and confidence is at an all-time high.

“The desire for people to live in the city forms part of our exciting future. 

“This investment by Grainger is testimony to the global positioning of Birmingham.

“The residential development at Exchange Square reinforces the direct benefits of HS2 and the Curzon masterplan.”