Dutch asset manager APG and UK property company Grainger are investing in a London build-to-rent scheme.
The pair鈥檚 GRIP Unit Trust joint venture will forward purchase a 90,000sqft build-to-rent, private rented sector () scheme from Bouygues Development for 拢33.25m (鈧�44.5m).
APG entered the UK residential property market , buying part of a 拢350m portfolio with Grainger.
The Dutch institution invested 拢158m in GRIP to buy part of G:res1, one of Grainger鈥檚 property funds.
GRIP is focused on London and the southeast of the UK.
The deal is Grainger鈥檚 third with Bouygues.
Tracey Hartley, GRIP fund manager, said demand for high-quality rented homes 鈥渇ar outweighs supply鈥�.
鈥淧RS represents a long-term rental income and a stable yield for our investors,鈥� Hartley said.
鈥淚n line with our strategy, and with the financial support of Grainger and APG, GRIP will continue to explore further investment opportunities including build-to-rent.鈥�
The 16-storey residential tower will provide 134 one and two-bedroom apartments.
The joint venture said a PRS covenant had been applied, with permitted use restricted for the first eight years to PRS accommodation.
Bouygues Development, which is also developer, has taken a stake in the asset, part of the Hallsville Quarter project in Canning Town to the east of the UK capital.
