Grainger, the UK’s private rental homes largest provider announced more details about its most recent scheme in Nottingham. Grainger agreed to fund and acquire a 348 home Build to Rent (BTR) development from Blocwork LLP for £55.6m. Knight Frank acted for the vendor in securing the acquisition.
As developers of the scheme, Blocwork LLP, a joint venture by Network Rail and Bloc Group, are set up to deliver rail side sites nationally. Richard Thomas, Director, Blocwork LLP, said: ‘’We’re delighted to be working with Grainger on this project. We have been developing ideas to redevelop the site for some time. This has resulted in a viable development coming forward on this site that will add to the vibrancy of this part of Nottingham and complete the redevelopment of the station, which has become a great regional transport hub.”
This is Grainger’s first investment in Nottingham city, a key target in their BTR and PRS investment strategy. Nottingham was identified for its strong market fundamentals as the location which has a high rental demand and strong economic growth prospects. With the positive market backdrop, Nottingham has a limited amount of similar purpose-built, large scale rental housing schemes offering residents amenities.
Helen Gordon, Chief Executive, Grainger, said: “We’re pleased to agree this significant new investment for housing in Nottingham, a city we have been keen to invest in for some time due to its strong market characteristics and growth prospects. Nottingham has a vibrant community, with strong and growing demand for renting, but lacks high quality, professionally managed rental housing with amenities.
“Our rental housing scheme on Queens Road will represent great value for renters with long-term, flexible tenancies, professional on-site resident services team, high speed broadband, and communal spaces and amenities such as a lounge and gym. We look forward to bringing this scheme forward swiftly with Blocwork Group.”
The BTR scheme is in a good location on Queens Road – close to the town centre and adjacent to Nottingham railway station.
This transaction is subject to satisfactory conditions from a contractor. Once met – likely within the next few months – the transaction will become unconditional and be considered fully secured.
In late 2019, planning permission was granted for the scheme subject to agreement of the Section 106 agreement. Construction is due to begin in 2020 with the scheme expected to be leased by early 2024.
David Biggs, Managing Director at Network Rail Property, said: “The Nottingham development is a fantastic example of Network Rail working closely with the private sector to deliver vital new homes on land no longer required by the operational railway.
“The investment by Grainger points to the growing appetite in the sector for viable Build to Rent schemes, and we are pleased this early investment has been secured.”
Image credit: Grainger