A major build-to-rent scheme is to be developed in Bristol by the UK’s leading provider of rental homes as the city continues to become a magnet for upmarket residential property investment.
London-based Grainger has already developed the 194-apartment Hawkins & George scheme at Finzels Reach, pictured, which features a shared rooftop terrace and co-working space. 
Bristol’s first build-to-rent development, it was fully leased less than four months after opening.
Now the firm has acquired the nearby 231-home development for £63.1m, with Cubex Land as development manager, backed by Fiera Real Estate.
Cubex bought the site in 2016 on behalf of Fiera Real Estate Opportunity Fund IV. Construction is expected to start this month, with completion expected in about two-and-a-half years.
Grainger said Bristol was a key target city for the firm – it has developed clusters of build-to-rent schemes in other cities such as London and Manchester.
The new development – which it described as a “highly attractive investment opportunity” – combined with Hawkins & George would generate further economies of scale, it said.
Build-to-rent schemes have become a honeypot for investors over the past few years, attracting more than £6bn in 2018.
Unlike the wider private rental sector, the schemes are designed specifically for a community of people renting their homes, are managed by a single professional landlord and investor and have features such as professional onsite management, a 24-hour concierge, flexible and secure tenancies and amenities such as an on-site gym, wi-fi, a residents’ lounge, a roof terrace with views of the Bristol skyline, bike storage and co-working space.
More than 2,000 such apartments are in the pipeline to be developed in Bristol over the next few years to help meet spiralling demand for housing, particularly among young professionals.
Grainger chief executive Helen Gordon said: ”This acquisition is an exciting addition to our growing portfolio of high-quality rental homes in Bristol, a city which meets our strict investment criteria.
“Demand for high-quality rental homes in Bristol continues to grow, and this scheme will add greater scale to our city cluster, improving our ability to drive efficiencies while delivering a great service to our customers.”
Cubex director Peter Walford said the development would also incorporate 66 new affordable homes alongside the developer’s 116,000 sq ft Halo office building, which it substantially pre-let to international law firm Osborne Clarke and forward funded with Tesco Pension Trust.
Fiera Real Estate director Steven Wright added: “The sale represents the completion of the second phase of Finzels Reach where Cubex and Fiera Real Estate have developed – or realised – over £400m worth of assets.
“This has converted a derelict under-utilised part of central Bristol into a thriving hub delivering a vibrant 24/7 community in over 400,000 sq ft of commercial space, including two BREEAM ‘outstanding’ offices buildings, 400-plus apartments and a new hotel.
“We look forward to securing similar new opportunities on behalf of the Fiera Real Estate Opportunity Fund V, which is active and currently investing.”
Knight Frank acted for Fiera Real Estate and Cubex Land. Willmott Dixon Construction has been appointed as the contractor.
Grainger is the UK’s largest listed residential landlord with 8,941 operational rental homes and a further 8,950 in its pipeline.
