Grainger Trust has bought a portfolio of 700 market-let residential properties from Andreas Panayiotou’s Ability Group for £205m.

The portfolio comprises 232 new-built or and refurbished houses and flats, 256 live/work units, 128 commercial properties and 84 parking spaces. The average value of the space is £341/sq ft (£3,670 sq m).

Around 90% of the properties are located in the London boroughs of Islington and Hackney- two regions expected to benefit from the infrastructure and regeneration works taking place in London for the 2012 Olympics Games.

News of the acquisition broke as Grainger revealed details of fresh equity investment in its G:Res 1 fund. The fund has attracted £10m of equity from Nomura Real Estate Capital, bring the total institutional investment in the fund to £66m.

Rupert Dickinson, chief executive of Grainger, said: ‘The acquisition of this portfolio means that G:Res1 is substantially invested within four months, well ahead of its three-year target. This off-market deal clearly demonstrates Grainger’s ability to deliver value.’