Grainger Acquires London Build-To-Rent Plan for GBP141 Mln -- Deal Digest
By Joe Hoppe
ACQUIRER: Grainger PLC, a property-investment company.
TARGET: Merrick Place, a 401-home build-to-rent plan in Southall, West London. Construction is expected to begin in December, with practical completion expected in mid-2025.
PRICE: 141 million pounds ($192.6 million) in forward funding.
STATUS: Agreed, with conditional contracts exchanged.
EXPECTED CLOSE: Shortly, once outstanding conditions are agreed, including a Section 106 Agreement with the local authority.
RATIONALE: Merrick Place builds on Grainger's existing West London portfolio. Including commercial and office space, the acquisition will generate a gross yield on cost of around 5.75% once fully let and stabilized.
QUOTATION: "Merrick Place is an excellent addition to our existing portfolio in and around West London and will benefit from both operational efficiencies and opening of Crossrail," Chief Executive Helen Gordon said.
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