Grainger plc, the UK’s largest listed residential landlord, today announces that it has exchanged conditional contracts to forward fund and acquire the build-to-rent element of the second phase of ‘Redcliff Quarter’ in Bristol, which comprises 374 private rental (PRS) homes, as well as 94 affordable homes and six commercial units.
Grainger has agreed to acquire the scheme from Redcliff MCC LLP, backed by ICG Real Estate in partnership with Madison Cairn. Winvic Construction has been appointed as contractor for the scheme. Winvic built Grainger’s Brook Place development in Sheffield and is also delivering the Copper Works in Cardiff for Grainger. Knight Frank’s Residential Investment and Affordable Housing teams advised ICG Real Estate and Madison Cairn.
In addition to the 374 PRS homes and 94 affordable homes at Redcliff Quarter, the scheme includes a total of c.5,900 sq. ft of internal residents’ amenity space; c.21,200 sq. ft of external amenity space; c.8,500 sq. ft of commercial space; and 31 car parking spaces. A further six commercial units totalling c.15,800 sq. ft have also been acquired as part of the transaction.
The site is located within the central Redcliff district of Bristol and forms part of the second and final phase of ‘Redcliff Quarter’, a wider residential-led, mixed use masterplan development. The scheme is a nine-minute walk from Bristol Temple Meads rail station.
Construction is expected to commence in Q3 2022, with practical completion of the final element targeted for early 2025. It is anticipated that the scheme, including the commercial element, will generate a gross yield on cost of c.6% once fully let and stabilised.
In line with Grainger’s cluster strategy, Redcliff Quarter builds on Grainger’s existing Bristol portfolio, which includes Hawkins & George, comprising 194 build-to-rent homes, and Millwrights Place which will comprise 231 build-to-rent homes when complete in early 2024.
Winvic’s Director for Multi-room, Mark Jones, commented: “We’re delighted that Grainger has put its trust in Winvic once again to deliver Redcliff Quarter in Bristol. Having worked closely with Grainger as funder before on schemes in Sheffield and Cardiff, all parties are confident of having aligned values and aims from the outset. The project team is already making excellent progress on site, and we look forward to reaching practical completion on the 468 private rental flats and affordable homes in 2025.”
Helen Gordon, Chief Executive Officer of Grainger, 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.”
Aneil Handa, Managing Director of Madison Cairn commented: “There is a serious under-supply of homes in Bristol. By working in partnership with ICG Real Estate and Grainger we have been able to secure planning permission for a revised Redcliff Quarter scheme that saw a substantial increase in the number of homes delivered on the site, compared with the previous consent. Importantly, the new scheme now has 94 affordable homes, which will make a real contribution to helping address Bristol’s housing need.
“We believe this increased value – social and economic – highlights Madison Cairn’s development and asset management expertise benefitting both investors and communities.
“Redcliff Quarter will be a really vibrant place in the heart of this fantastic city, and we are very glad to have played our part in making this happen.”
Paul Hawkey, Associate in Knight Frank’s Residential Capital Markets team, said: “The sale of Redcliff Quarter is a landmark deal for the city of Bristol – rarely do opportunities such as these become available on the open market. The transaction demonstrates the high level of demand for Build to Rent assets and the requirements for stock in a city which will always be challenged supply wise due to its heritage being so heavily safeguarded. Appetite for BTR developments in Bristol doesn’t seem to be cooling.
“Acting on behalf of ICG, we are delighted to have been able to broker both the affordable and private elements of the scheme via close collaboration with our London and local teams in Bristol.”
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