Grainger Expands London Footprint with £68.4 Million Build-to-Rent Acquisition, Shares Gain

Grainger plc (LON: GRI), the UK's largest listed residential landlord, has announced a significant expansion of its London portfolio through its Connected Living London (CLL) joint venture with Places for London, the property arm of Transport for London (TfL).

The JV will forward fund and acquire a 195-home Build to Rent (BTR) scheme at Chiswick Reach, West London. The development represents a total investment of approximately £68.4 million.

Grainger shares rose over 1% on Monday morning.

The Chiswick Reach scheme, developed in partnership with Barratt Redrow PLC, has secured detailed planning consent and regulatory approval, paving the way for construction to commence in Q1 2026.

The project will deliver 195 new BTR homes, including 95 Discounted Market Rent homes, addressing the critical need for affordable housing in the capital. The development will also incorporate 4,299 sq ft of commercial space and 5,499 sq ft of internal amenity space, including co-working facilities and a gym.

Grainger's share of the purchase price is split 51:49 with Places for London, aligning with the CLL structure. The Company anticipates returns from the scheme to be in line with its target range for London-based projects, while also generating asset management fees. This acquisition not only bolsters Grainger's portfolio but also provides a steady stream of income through management services.

The strategic location of Chiswick Reach, situated on Bollo Lane and within walking distance of Chiswick Park and South Acton stations, enhances its appeal to renters. This site expands Grainger's presence in West London. The project is expected to reach practical completion in late 2028, with leasing commencing in late 2028 / early 2029.

This venture marks Grainger's first BTR collaboration with a major UK housebuilder, potentially unlocking new avenues for future partnerships. By partnering with Barratt Redrow, Grainger gains access to established construction expertise and streamlined development processes.

Helen Gordon, Chief Executive of Grainger, stated, “We are pleased to announce this strategic milestone in our partnership with Places for London, a new scheme in our JV's pipeline with construction commencing imminently, delivering 195 high quality rental homes in a well-connected West London location.”