In a landmark development for the UK housing market, Grainger, the nation’s largest listed residential landlord, has announced a significant collaboration with Network Rail and the Bloc Group. This partnership aims to create 2,000 Build-To-Rent (BTR) homes across the UK, a move that promises to reshape the landscape of property investment and provide new opportunities for potential investors.
The Grainger and Network Rail Partnership
Grainger’s partnership with Network Rail and the Bloc Group marks a strategic move in the property investment sector. Network Rail, responsible for managing the UK’s railway infrastructure, is set to contribute potential sites from its extensive property portfolio. These sites are primarily brownfield locations adjacent to railway infrastructure, making them prime candidates for development due to their connectivity and location.
Role of the Bloc Group
The Bloc Group, a large property developer, joins this venture as a key collaborator. Their expertise in property development complements Grainger’s investment and management capabilities, creating a formidable trio in the Build-To-Rent sector.
The Blocwork Joint Venture
The ‘blocwork’ joint venture, a collaborative effort by Grainger and its partners, focuses on utilising these brownfield sites. The primary goal is to enhance local economies through strategic property development, providing high-quality rental housing options in well-connected urban areas.
The Nottingham Success Story
A testament to the potential of this partnership is the successful completion of a 348-unit BTR project in Nottingham. Located next to the Nottingham Midland stations, this 10-storey block, known as ‘The Barnum,’ exemplifies the efficiency and strategic foresight of the blocwork venture.
Strategic Implications and Growth Prospects
Helen Gordon, the CEO of Grainger, highlights this partnership as a cornerstone for further collaborations. She emphasizes the alignment of this venture with Grainger’s city-centric strategy, aiming to deliver high-quality rental homes across the country.
Impact on Grainger’s Growth
This partnership is not just a mere expansion for Grainger but a strategic move that aligns with its ambitious growth plans. Access to well-located and connected sites is a significant boon for Grainger, propelling them further in the BTR market.
Financial and Market Impact
Trading Statement Highlights
Coinciding with this announcement, Grainger’s trading statement to shareholders revealed impressive figures. The occupancy rate in its private rented portfolio reached an all-time high of 98.6%, with a notable rental revenue growth of 8.0% in the past year.
Grainger’s Portfolio and Future Pipeline
Grainger currently operates a massive £3.3 billion portfolio, encompassing 10,208 private rental homes. Moreover, the company has a robust pipeline, with plans for an additional 5,634 BTR units valued at £1.6 billion.