Newcastle-headquartered Grainger plc, the UK’s largest listed residential landlord, said on Monday it acquired a 231-home forward fund build to rent development in Bristol for £63 million.

Cubex Land will be development manager, backed by Fiera Real Estate, and Willmott Dixon Construction Limited has been appointed as contractor.

“Bristol is a key target city for Grainger and, in line with Grainger’s cluster strategy, this new investment generates further economies of scale in conjunction with Grainger’s nearby asset, Hawkins & George,” said Grainger.

“Hawkins & George, part of Cubex and Fiera Real Estate’s Finzels Reach Scheme, was Bristol’s first build-to-rent development launched in the city.

“The purpose-built accommodation includes 194 apartments across two buildings. Across both schemes, Grainger will have 425 rental homes in the city. 

“Construction is expected to commence in January 2021, with construction completion targeted for H2 2023.

“Grainger expects this investment to generate a gross yield on cost of c.6% once stabilised.

“This is a highly attractive investment opportunity which meets Grainger’s strict investment criteria and will further boost Grainger’s investments in Bristol, a key target city.”

Grainger CEO Helen Gordon said: “This acquisition in Bristol is an exciting addition to our growing portfolio of high-quality rental homes in Bristol, a city which meets our strict investment criteria.

“Demand for high-quality rental homes in Bristol continues to grow, and this scheme will add greater scale to our city cluster, improving our ability to drive efficiencies while delivering a great service to our customers.”