Listed residential landlord Grainger plc has bought the 373-unit second phase of the Exchange Square build-to-rent development in Birmingham for £77M.

The deal with Nikal is conditional on securing planning consent for a revision of the Phase 2 proposals. The BTR purchase is expected to be completed in mid-2019.

Work on Phase 1 of Exchange Square is currently underway with the first of the buildings scheduled for handover in January.

This 603-unit first phase comprises three buildings of 27, 16 and nine storeys, and has been sold to LaSalle Investment Management through a build-to-rent deal worth in excess of £100M. LaSalle acquired the long leasehold interest in the scheme on behalf of a client.

Grainger expected its second phase investment to generate a gross yield on cost in excess of 6.5% once stabilised, with completion anticipated in 2022.

“Once Exchange Square is complete, Grainger will have 529 purpose-built PRS homes in Birmingham worth c.£105M, including our other PRS development scheme, Gilders Yard in the Jewellery Quarter," Grainger Chief Executive Helen Gordon said.