The residential landlord has acquired the blocks – which comprise 192 private rented sector (PRS) homes – from Cabot Square Capital.

Grainger expects the investment to generate a gross yield on cost of around 7%.

Manchester has been targeted as a key city for Grainger’s PRS investment strategy due to its strong economic prospects and growth potential.

•   £100m retirement home portfolio acquired
•   Portfolio of retirement villages sold for £102m
•   Amicus lends £9m for redevelopment of historic Manchester building

"We are pleased today to announce our latest investment in one of our key target locations Manchester, which delivers 192 high-quality rental homes, building on our existing portfolio in and around the area, leveraging off our operational platform and local management office,” said Helen Gordon, chief executive of Grainger.

The announcement follows Grainger’s agreement to forward fund and acquire a 156-home PRS, build-to-rent scheme in Birmingham for around £28m.