Grainger raises £185m to fund rental developments

Build-to-rent developer Grainger is seeking to raise around £185m via a share placing to extend its development pipeline.

The placing of up to 61.2m shares, which are likely to start trading next week, is expected to increase Grainger’s secured PRS investment pipeline by £246m to £978m, delivering 4,369 homes.

It will also provide a further £59m of funding capacity to develop opportunities. The group’s total pipeline now exceeds 9,000 homes.

Helen Gordon, Grainger’s chief executive, said the long-term outlook for rental housing in the UK remained strong, “with growing customer demand and structural undersupply supporting the investment case”.

She went on: “We have real momentum in the business and now is the right time to invest for the future and increase our investment in our secured pipeline.

“Today’s placing will enable us to bring forward £246m of investment for four new schemes, three of which are in strong regional cities, delivering 1,160 new homes, as well as expand our planning and legal pipeline, accelerating the delivery of net rental income and earnings growth,” she added.

Funds from the placing would help the group to develop schemes in Canning Town, London (132 homes), Cardiff (307 homes), Nottingham (348 homes) and Birmingham (373 homes).

This week Grainger announced that its partnership with Transport for London would seek to put more homes into a scheme (pictured) being built above a planned tube station in south London.

Designed by Assael Architecture, the homes will be above the new Nine Elms  Underground station being built by Laing O’Rourke and Ferrovial – the joint venture behind the £500m Northern line extension from Battersea to Kennington via Nine Elms.