The scheme in the Hallsville Quarter development in Canning Town, east London, includes approximately 11,000 sq ft of commercial space and will be developed by Linkcity alongside building contractor Bouygues UK.
This will be the fifth PRS scheme that Linkcity and Bouygues UK have delivered for the residential landlord and PRS specialist.
The project is Grainger’s third in Canning Town, with the transaction subject to various conditions being satisfied.
Once these have been met and the transaction becomes unconditional — which is anticipated to happen early in 2020 — the scheme will be fully secured.
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Construction of the development will commence in late 2021, with Grainger expecting the investment to generate a gross yield on cost of 5.5%.
Completion is anticipated to be in late 2024.
Helen Gordon, chief executive at Grainger, said: “We are pleased to further strengthen our London presence with this acquisition, which will deliver 132 high-quality homes for rent in one of our top target cities.
“The Canning Town area is undergoing significant regeneration, and we know from our experience with Argo Apartments that this is a very popular location to live, with such great access to the wider city.
“Upon completion of this project, Grainger’s east London cluster will comprise 748 purpose-built homes, providing scale and operational efficiencies.”