Grainger plc has exchanged conditional contracts to forward fund and acquire the build-to-rent element of the second phase of ‘Redcliff Quarter’ in Bristol which comprises 374 private rental (PRS) homes, as well as 94 affordable homes and six commercial units. Grainger has agreed to acquire the scheme from Redcliff MCC LLP, backed by ICG Real Estate in partnership with Madison Cairn. Winvic Construction Limited has been appointed as contractor for the scheme. Winvic built Grainger’s Brook Place development in Sheffield and is also delivering the Copper Works in Cardiff for Grainger.
In addition to the 374 PRS homes and 94 affordable homes at Redcliff Quarter, the scheme includes a total of circa 5,900ft² of internal residents’ amenity space; 21,200ft² of external amenity space; 8,500ft² of commercial space; and 31 car parking spaces. A further six commercial units totalling 15,800ft² have also been acquired as part of the transaction. The site is located within the central Redcliffe district of Bristol and forms part of the second and final phase of ‘Redcliff Quarter’, a wider residential-led, mixed use masterplan development. The scheme is a nine-minute walk from Bristol Temple Meads rail station.
Construction is expected to commence in Q3 2022, with practical completion of the final element targeted for early 2025. It is anticipated that the scheme, including the commercial element, will generate a gross yield on cost of c.6% once fully let and stabilised.
Helen Gordon, Chief Executive Officer of Grainger, said: “We are very pleased to acquire our third build-to-rent scheme in Bristol which will further strengthen our city cluster, bringing our total investment in the city to nearly 900 homes when complete and driving operational efficiencies, whilst also enabling us to deliver 94 new affordable homes via Grainger Trust, our in-house affordable housing arm.”