Listed residential landlord Grainger has exchanged contracts to forward fund the £80m development of 375 private rented sector flats on Gore Street, forming part of the widespread regeneration of Salford’s Chapel Street area.
Grainger has agreed to fund the project, while UKLP Gore Street, a joint venture between UK Land & Property and Sir Robert McAlpine Enterprises, will develop the site, with Sir Robert McAlpine acting as contractor.
The scheme, designed by OMI Architects, was first granted planning permission last year, but revised proposals were approved by Salford City Council last month.
The site is bounded by Trinity Way and Gore Street, and forms part of the Chapel Street regeneration area, being delivered largely by English Cities Fund. ECF is a joint venture between Muse Developments, Legal & General and Homes & Communities Agency. ECf and Euro Car Parks are the landowners of the Gore Street site.
The scheme is set to complete in 2020. It will deliver 375 private rental homes through a mix of apartments and townhouses.
It is anticipated to generate a gross yield of 7% once fully let.
According to Grainger, Greater Manchester is a key target area for its PRS investment strategy. The Gore Street acquisition builds on Grainger’s existing projects in the area, including the £100m investment at Clippers Quay in Salford, delivering 614 new rental homes where construction is well underway and first completions are expected next year.
Helen Gordon, chief executive of Grainger, said: “We are pleased today to announce this significant £80m investment to deliver 375 new, high quality, purpose built rental homes in Salford, near Spinningfields, building on our existing portfolio in and around Manchester city centre and leveraging our operational platform and Manchester regional office.”