Grainger PLC conditionally agreed to acquire a 261-home development in Milton Keynes, U.K., for roughly £63 million.
The private rented sector build-to-rent development is being acquired from Peveril Securities Ltd., which will also construct the project.
The acquisition is subject to the completion of a new YMCA center next to the site, which will form part of the first stage of the wider development. Completion of the YMCA center is expected in the third quarter of 2019, after which construction will commence on the build-to-rent development. The 261-home development is expected to be completed in the second half of 2021.
Grainger expects the acquisition to generate a gross yield on cost of roughly 6.25% after stabilization.
