StockMarketWire.com - Rental homes provider Grainger said it had agreed to forward fund and acquire a 348-home build-to-rent development in Nottingham from Blocwork for £55.6m.

Planning permission for the scheme, located on the Queens Road within close proximity to the town centre and adjacent to Nottingham railway station, was granted in late 2019.

Blocwork, a 50:50 joint venture between Network Rail and Bloc Group, had been setup to develop rail side sites nationally, and was the developer of the scheme.

The transaction was subject to the satisfactory appointment of a contractor and other conditions, expected to be met in the next few months, Grainger said.

Construction was expected to commence in the second half of 2020 with the scheme expected to be leased and stabilised by early 2024.

Grainger said it expected the investment to generate a gross yield on cost of over 7% once stabilised.

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