Grainger said yesterday it will pay £13.7m for the residential part of the scheme comprising of 100 residential units, which it is due to complete in 2015.
The group plans to let the homes rather than to sell them on to private individuals, and will also take responsibility for the asset and property management.
The deal is part of a wider strategy outlined by Grainger last year “to play a significant role” in the UK’s growing private rented sector.
Nick Jopling, Grainger’s executive director for property, called the acquisition “a significant milestone for the private rented sector”.
“This is a sector that desperately needs to grow in order to meet the demands of the UK population and is supported at the highest levels of government, and we believe that this style of residential development has huge potential to grow in the coming years,” Jopling added.