Grainger PLC signed a roughly £77 million deal to forward fund and acquire a build-to-rent development at Exchange Square in Birmingham, U.K.

The deal, which is set to become unconditional in mid-2019, is subject to planning consent, among other conditions.

Developer Nikal Ltd. plans to deliver the 373-home project in 2022 as part of a new urban village development in the area. Grainger estimates its investment to generate a gross yield on cost of more than 6.5% once stabilized.

Separately, the British residential landlord said it received valid acceptances in respect of 186,870,430 new ordinary shares in its rights issue of up to 194,758,491 new ordinary shares at 178 pence per share.

The acceptances represent approximately 95.9% of the total number of shares offered in the 7-for-15 rights issue, which was launched to fund the company's £396 million buyout of GRIP REIT PLC.

The new fully paid shares are slated to begin trading on the London Stock Exchange on Dec. 18.

Underwriters J.P. Morgan Cazenove and Numis Securities Ltd. will seek to secure subscribers for the remaining 7,888,061 shares of the issue.