GRIP Unit Trust (the “Fund”), the market-let UK residential property fund owned by APG and Grainger, announces the forward purchase of a new 90,000 ft² (8.361 m²) build-to-rent scheme from BY Development Limited (“Bouygues Development”) for £33.25 mln (€44.5 mln). Bouygues Development, which is also the developer of the scheme, has retained a stake in the ownership of the asset, as part of its commitment to the build-to-rent sector.
The development forms part of the wider Hallsville Quarter masterplan, a major new mixed - use regeneration project in Canning Town, London, which is being undertaken by Bouygues Development in partnership with the London Borough of Newham. In a highly prominent location, directly opposite Canning Town Tube Station, Hallsville Quarter forms part of the £3.7 billion (€4.9 bln) Canning Town and Custom House Regeneration Programme and will become the new town center for Canning Town.
The 16-story residential tower will provide 134 one and two bedroom apartments together with 25 car parking spaces and 4,173 ft² (371 m²) of resident amenity space. This purpose-built scheme has been specifically designed to provide accommodation aimed at private renters and to optimize property management efficiency. A PRS covenant has been applied and the permitted use under the lease shall be restricted for the first eight years, post practical completion, to private rented sector (“PRS”) accommodation.
Tracey Hartley, Grainger’s GRIP Fund Manager, said: “This transaction builds on an established partnership between Bouygues Development and Grainger and is further evidence of our commitment to the UK private rented sector. We now look forward to working alongside Bouygues Development and the London Borough of Newham to deliver this exciting new long-term development.”
Nicolas Guerin, Managing Director of Bouygues Development, said: “We are very pleased to close our second build-to-rent transaction in partnership with Grainger, with whom we have worked from concept design stage to create a bespoke PRS product of high quality in the exciting new mixed-use regeneration of Canning Town. We are firm believers in the build-to-rent sector and the PRS tower at Hallsville Quarter underlines our ongoing commitment to deliver purpose-built, professionally-managed, and institutional-quality homes for communities in London.