LONDON (dpa-AFX) - Grainger Plc. (GRI.L), a residential landlord, announced Tuesday that it has agreed to forward fund and acquire a 373-home PRS development, known as 'build to rent', at Exchange Square in Birmingham for about 77 million pounds. The developer is Nikal Limited.
The transaction is subject to a number of conditions that the developer must meet, including securing planning consent. When these conditions are satisfied, the transaction will become unconditional, anticipated in mid 2019, after which the scheme will be fully secured, and construction will commence.
The company said the scheme will form part of a new urban village at Exchange Square.
Grainger expects this investment to generate a gross yield on cost in excess of 6.5% once stabilised, with completion anticipated in 2022.
Separately, the company announced that the fully underwritten 7 for 15 Rights Issue of 194.76 million New Ordinary Shares at 178.0 pence per Share closed for acceptances at 11.00 am (London time) on December 17.
The Company received valid acceptances in respect of 186.87 million New Ordinary Shares, representing approximately 95.95 percent of the total number of New Ordinary Shares offered pursuant to the Rights Issue.
It is expected that the New Ordinary Shares will commence trading, fully paid, on the London Stock Exchange's main market for listed securities at 8.00 am today, 18 December 2018.
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