The Fabrik development has now started on site after contractual conditions were met.
The construction now has full planning consent and completion is anticipated for late 2021.
The developer is Leeds-based Oakapple Group, with Tolent Construction Limited serving as the building contractor.
Grainger expects the investment to generate a gross yield on cost of over 6.5% once stabilised.
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Helen Gordon, chief executive at Grainger (pictured above), said: “We are pleased to announce the start on site of our latest investment in Leeds, one of our target regional cities, which will deliver 216 new high-quality, purpose-built rental homes.
“Fabrik will complement our 242-home Yorkshire Post development, also in Leeds, thereby providing [almost] 500 PRS units in Leeds once these schemes are delivered.”
Philip Taylor, chairman at Oakapple Group, added: “Oakapple [is] delighted to be working with Grainger on delivery of this project.
“As a Leeds business, we are particularly pleased to see a major institution committing further to our city.
“It is a vote of confidence in the South Bank and hopefully a catalyst for further schemes to come forward in the area.”