Grainger needs additional funding for four planned private rented sector (PRS) schemes that would together add more than 1,000 homes to its portfolio, taking it past the 10,000 mark.
The share placing is expected to raise £185m gross. Add in the £120m of debt that it has to play with, this will generate aggregate funding capacity of £305m.
Chief executive Helen Gordon said: "We have real momentum in the business and now is the right time to invest for the future and increase our investment in our secured pipeline. Over the last four years, we have transformed Grainger into the UK's leading provider of private rental homes, with c.9,000 operational rental homes and an attractive and growing pipeline of opportunities for over 9,000 more new private rental homes. Today's placing will enable us to bring forward £246m of investment for four new schemes, three of which are in strong regional cities, delivering 1,160 new homes, as well as expand our planning and legal pipeline, accelerating the delivery of net rental income and earnings growth.
"The outlook for the UK's private rented sector is positive, with growing customer demand and structural undersupply supporting the investment case. With our deep knowledge and experience in the market, we are able to deliver long-term, sustainable returns through our targeted investment strategy, coupled with our strong operational platform.
"Grainger's integrated owner-operator business model delivers enhanced returns at scale, and today's placing will allow us to further grow our business in high-quality rental homes and deliver great service to our customers, which in turn will drive long-term shareholder value."
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