Palmer Capital Secure £46m forward funding agreement to Grainger to deliver c.200 PRS homes

Palmer Capital and Cubex Land have topped off a busy 2016 by completing the forward funding of the 194 apartment Built-to-Rent development to Grainger plc for £45.7 million. Willmott Dixon have been appointed as the main contractor and completion is scheduled for 2019 with Cubex Land overseeing the development management.

Palmer Capital originally acquired the distressed, mixed use site in December 2013, via a loan purchase, where the lending bank had foreclosed and appointed a receiver.

On acquisition. Palmer Capital gained access to:

  • 4.7 acres in the Bristol City Centre with an historic master plan.
  • 115,000 sq. Grade A office (25% leased to BDO and Barclays) but lacking market identity
  • 140 private residential apartments (73 unsold).
  • 55 affordable apartments (100% sold).
  • 7 further sites with planning for mixed use development.

The sale is the latest in a productive year at Finzels Reach, where Palmer Capital and Cubex have overseen the commitment of £200 million to the site.

This included the disposal of the 115,000 sq. ft. Bridgewater House to a private investor in April 2016 for £56.3 million. The office building was predominately let to EDF on a 15 year lease. In addition, the parties have commenced the construction of the 95,000 sq. ft. Aurora office building, funded through the Palmer Capital Development Fund 3. This remains the only speculative Grade A office building under construction in central Bristol and will be ready for occupation in Q1 2018 with a targeted BREEAM “Outstanding” rating.

Other construction onsite includes the 38 unit residential Cask Store. This will be completed in Q1 2017 and already 35 of the flats have been pre-sold off plan for over £11.5 million. In addition, the £18 million 168 bedroom Premier Inn hotel will be opening in summer 2017.

 Steven Wright, Director at Palmer Capital said:

“We are delighted that, in conjunction with Cubex Land, our ability to oversee complicated and multi-disciplined business plans has been able to deliver to our investors a premium level of risk-weighted return whilst creating a vibrant and exciting mixed use local community in the centre of Bristol.”

 Gavin Bridge, Director at Cubex Land

“Although 2016 has been a busy year, we expect 2017 will follow on with the business plans of the remaining buildings being brought forward as part of a 60,000 sq. ft. retail, leisure and office project and the oversight of the existing construction onsite”