Grainger has agreed to forward fund and acquire a 373-home PRS development at Exchange Square in Birmingham for c.€86m (£77m). The developer is Nikal. Grainger expects this investment to generate a gross yield on cost in excess of 6.5% once stabilised, with completion anticipated in 2022. The scheme that will form part of a new urban village, builds on Grainger’s existing portfolio of PRS investments in Birmingham which will provide scale and operational efficiencies once practical completion has been achieved. The building will be a prestigious landmark for those arriving at the Birmingham HS2 Curzon Street Station, which is directly opposite the site, providing a gateway into the city centre and will link residents to London in 49 minutes.
Helen Gordon, Chief Executive of Grainger, said: “We are delighted to announce the acquisition at Exchange Square in Birmingham forc.€86m (£77m), which will deliver 373 homes for rent in a great central location in one of our top target cities. Birmingham has exciting growth plans and we are pleased to be part of it. Once Exchange Square is complete, Grainger will have 529 purpose-built PRS homes in Birmingham worth c.€116.5m (£105m), including our other PRS development scheme, Gilders Yard in the Jewellery Quarter.”
Waheed Nazir, Corporate Director, Birmingham City Council said: “The skyline in Birmingham City Centre is changing rapidly and investment and confidence are at an all-time high. The desire for people to live in the city forms part of our exciting future. This investment by Grainger is a testimony to the global positioning of Birmingham. The residential development at Exchange Square reinforces the direct benefits of HS2 and the Curzon masterplan.”
Nick Payne, Managing Director, Nikal Limited, said: “We are delighted to be working with Grainger on the final phase of Exchange Square. The announcement is made after months of careful design to create an exemplary PRS development. We hope work will begin in mid-2019.”
