Summary
Grainger PLC has agreed to forward fund and take ownership of a 195-home Build to Rent development at Chiswick Reach on Bollo Lane in West London via its Connected Living London partnership with Places for London. The purchase price will be split between the partners, with Grainger acquiring a 51% stake and Places for London holding the remaining 49%.
Transaction and structure
The arrangement will see Grainger and Places for London share the purchase cost in line with their respective ownership percentages. The regulatory filing disclosing the deal, released Monday, identifies Barratt Redrow as the development partner for the West London scheme. As part of the financial framework of the deal, Grainger will receive asset management fees in addition to its equity interest.
Expected returns
Grainger has stated that it expects the Chiswick Reach development to generate returns that fall within the company’s target range for London schemes. The statement indicates an expectation rather than a guarantee of performance.
Portfolio implications
The acquisition adds to the Connected Living London partnership’s expanding portfolio of Build to Rent properties across the capital. The transaction underscores the ongoing activity within the partnership and its continued focus on growing a rented housing portfolio in London.
Contextual notes
- Places for London is identified as the property arm of Transport for London.
- The development will be constructed in collaboration with Barratt Redrow, as stated in the regulatory filing.
- The filing announcing the purchase was released Monday.
Bottom line
The Connected Living London partnership will add the 195-home Chiswick Reach scheme to its holdings, with Grainger taking the majority stake and receiving asset management fees. Grainger anticipates returns within its London target range, while Barratt Redrow will partner on development delivery.
This article presents the transaction terms and company expectations as disclosed in the regulatory filing; it does not introduce estimates or projections beyond the statements cited.