Grainger snaps up Manchester landmark in £31m deal
Residential property giant Grainger has snapped up a £31m build-to-rent landmark located in one of Manchester’s most thriving neighbourhoods.
The UK’s largest listed landlord said the purchase of The Astley – a fully-occupied development of more than 135 homes within the city’s Northern Quarter – reflected an increasing number of opportunities to acquire build-to-rent schemes.
The group bought the development from property investor M&G Real Estate.
This latest buy by Grainger will add to the company’s existing cluster of around 1,700 rental homes in the North West, including Clippers Quay at Salford Quays and The Filaments near Spinningfields.
The group said the purchase had been made possible by its ongoing asset recycling programme, with the company disposing of an older PRS asset of 80-homes in London for around £27m.
Grainger said this had enabled the business to recycle its capital into The Astley, a higher yielding asset within one of its strategic cluster locations.
CEO Helen Gordon said: “The Astley is an excellent acquisition. A stabilised, income-producing, high-quality build to rent asset of 135 homes within our existing Manchester cluster, supported by our ongoing asset recycling programme.
“Today’s acquisition is earnings accretive and reflects the increasing number of opportunities we are seeing in the market to acquire existing build to rent assets.”
Alex Greaves, head of global living at M&G Real Estate, added: “The disposal of the Astley is in line with our ongoing long-term strategy, and we are pleased to work with market participants such as Grainger.
“It is good to see ongoing competition and liquidity in the market for high quality, income producing BTR stock in desirable locations like the Astley.”
Grainger currently operates a £3.3bn portfolio of 10,208 private rental homes and a £1.6bn, 5634 home build-to-rent pipeline.
Occupancy in the group’s portfolio remains at an all-time high of 98.6 per cent and rental growth has averaged eight per cent, “in line with wage inflation, split between 9.2 per cent on new lets and 7.2 per cent on renewals, demonstrating our commitment to customer loyalty.”