Peveril Securities will develop the site where Bowmer and Kirkland has been confirmed as main contractor.
The scheme has planning consent and construction it scheduled to start by the end of next year and be completed in the second half of 2021.
Helen Gordon, Chief Executive of Grainger, said: “We are pleased to announce our latest investment in Milton Keynes, one of our key target locations, which will deliver 261 new high quality, purpose built rental homes.
“This new investment will complement Silbury Boulevard, our other PRS build to rent scheme of 139 homes in Milton Keynes, which we own in our GRIP REIT joint venture, and is currently under construction.”
Ralph Jones, Director of Peveril Securities Limited, said: “We are delighted to be working with Grainger to provide a further 261 residential units in Milton Keynes, and we hope it will be first of many opportunities in the future for Peveril, Bowmer and Kirkland and Grainger to work together.”