Grainger PLC (LON: GRI) have seen their shares boosted after the firm announced a new acquisition in an update to shareholders.
Grainger is a British based residential property business, and have been trading since 1912. They have headquarters based in Newcastle upon Tyne, United Kingdom.
Grainger have seen a relatively positive period of trading across the last few months.
At the end of November, the firm saw its shares surge following a strong update. The FTSE250 said for the financial year to September 30, its net rental income grew 45% to £63.5 million from £43.8 million in 2018.
At a time where the UK housing market is apparently slumping, Grainger have appeared to defy the odds.
Grainger, in similar fashion to home building firms such as Taylor Wimpey and Homeserve have alluded to the tough UK market conditions and Brexit complications as a stagnation to business.
It seems that Grainger have once again pulled it out of the bag, and shareholders will be pleased with the update.
Today, Grainger alluded to the new acquisition of a capital quarter in Cardiff Wales for a reported £57 million.
The terms agreed include a forward funding and the acquisition of a 307 home project in the capital of Wales.
Grainger alluded to the growing nature of the Welsh property market due to its strong economic prospects and growth potential.
The home is currently being developed by IM Properties, with Winvic Construction Ltd acting as contractor.
The residential property provider said, apart from private rental homes, the scheme will deliver a range of amenities for residents, including a rooftop lounge and terrace.
Grainger said it expects this investment to generate a gross yield on cost approaching 7% once stabilised, with completion anticipated in mid-2022.
“We are pleased today to announce this £57 million investment to deliver 307 new, high quality, purpose built rental homes in Cardiff, supporting growth in the region, building on our existing portfolio in the South West and leveraging our operational platform,” said Chief Executive Helen Gordon.
Shares of Grainger currently trade at 280p (+0.73%). 5/12/19 12:43BST.