Grainger has agreed to acquire a 261-home build-to-rent development scheme in Milton Keynes for £63m.

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The scheme has planning consent although the transaction is conditional on the completion of a new adjacent YMCA as the initial part of a wider development which is expected to complete in Q3 2019.

Peveril Securities will develop the site, Mayforth will act as development manager and Bowmer and Kirkland will be the contractor.

Grainger expects the investment to generate a gross yield on cost of 6.25% once stabilised, with final completion on the PRS scheme anticipated in the second half of 2021.

Helen Gordon, chief executive of Grainger, said: “This new investment will complement Silbury Boulevard, our other PRS build to rent scheme of 139 homes in Milton Keynes, which we own in our GRIP REIT joint venture, and is currently under construction.”