Property firm Grainger has struck a £128m deal to buy a huge mixed-use development in Bristol, that will comprise more than 400 homes and six commercial units.
The Newcastle-based company has exchanged conditional contracts with Redcliff MCC LLP - backed by ICG Real Estate in partnership with Madison Cairn - to acquire the central build-to-rent site, a nine-minute walk from Bristol Temple Meads railway station.
The scheme is part of the second phase of the Redcliff Quarter regeneration project, a wider, residential-led development.
In addition to 374 private rental homes, it will include an additional 94 homes classified as affordable housing, around 5,900 sq ft of amenity space for residents, 21,200 sq ft of external amenity space, 8,500 sq ft of commercial space and 31 car parking spaces.
The six commercial units also included in the transaction will also provide 15,800 sq ft of space.
Construction firm Winvic has been appointed as main contractor, with building expected to commence in later this year in Q3. Practical completion of the final element is targeted for early 2025.
It is anticipated that the scheme, including the commercial element, will generate a gross yield on cost of around 6% once fully let and stabilised.
Previous owners ICG Real estate and Madison Cairn said they had recently secured planning consent from Bristol City Council for a “substantial increase” in the number of homes on the site, compared to previously approved plans.
Grainger, which describes itself as the UK’s largest listed landlord, already has a portfolio in Bristol that includes the Hawkins and George and Millwrights Place apartment block schemes in Finzels Reach.
Chief Executive Helen Gordon, said: "We are very pleased to acquire our third build-to-rent scheme in Bristol which will further strengthen our city cluster, bringing our total investment in the city to nearly 900 homes when complete and driving operational efficiencies, whilst also enabling us to deliver 94 new affordable homes via Grainger Trust, our in-house affordable housing arm.”
Jai Patel, managing director of ICG Real Estate, added: “ICG is proud to have been involved with the Redcliff regeneration since 2015, most recently securing a planning consent for 468 residential units in partnership with Madison Cairn, and working with Bristol City Council.
“We are pleased to have played a role in providing much-needed housing for the local community and believe Grainger is the right group to take this scheme forward.”
Estate agency Knight Frank, which advised ICG Real Estate and Madison Cairn, described the agreement as a “landmark deal” for the city.
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