Grainger plc announces today (14 October 2021) that it has exchanged conditional contracts to forward fund and acquire Merrick Place – a Build to Rent scheme in Southall, West London for £141m.
Proceeds from Grainger’s recent successful equity placing will help enable this acquisition. After the satisfaction of outstanding conditions which is expected shortly, including the Section 106 Agreement with the local authority, today’s transaction will become unconditional.
“We are pleased to work with Network Homes to bring forward Merrick Place to deliver 401 new, high quality, purpose built rental homes in Southall. Merrick Place is an excellent addition to our existing portfolio in and around West London and will benefit from both operational efficiencies and opening of Crossrail. This acquisition marks a further exciting investment for Grainger as we continue to deliver on our strategy in the fast-growing UK Build to Rent sector.”Helen Gordon, Chief Executive Officer, Grainger
Savills acted for Network Homes on this transaction. Located adjacent to Southall Station, including the new Crossrail station, the scheme forms part of a wider development to be delivered by Network Homes – with Henry Construction as the appointed contractor.
The Merrick Place scheme will deliver 401 Build to Rent homes, 18,116 sq ft of office space, 3,541 sq ft of flexible commercial floorspace, 5,253 sq ft of internal residents’ amenity and over 17,000 sq ft of external space. Construction is expected to start in December 2021, with practical completion targeted in mid-2025.
“This is the largest single build project that Network Homes has been involved with, so we’re really pleased to see this fantastic scheme get underway. It will deliver much needed homes, job opportunities and regeneration to this corner of West London. We’re looking forward to working with our partners to make this all a reality.”David Gooch, Executive Director of Development, Network Homes
It is anticipated that Merrick Place – including the commercial element – will generate a gross yield on cost of c.5.75% once fully let and stabilised – a highly attractive investment opportunity which meets Grainger’s disciplined investment criteria.
In line with Grainger’s cluster strategy, Merrick Place builds on the company’s existing West London portfolio, which includes Kew Bridge Court comprising c.100 homes. Grainger is pursuing Southall Sidings, a 460 home Build to Rent scheme which recently received planning permission. This scheme is close to Merrick Place and forms part of Grainger’s partnership with TfL via its Connected Living London joint venture.