CSP.L Share News (CSP)

(Sharecast News) - Countryside Properties expanded its strategic relationship with private rental sector provider Sigma Capital, it announced on Tuesday, launching a new London framework.
The FTSE 250 company said under the agreement, it would initially deliver 361 "high-quality" new-build homes for private rental from its mixed-tenure partnerships division across the capital.

It said the delivery of the private rental homes would enable the acceleration of important regeneration projects, and the earlier delivery of housing of other tenures.

The new private rental homes would comprise the first phase of housing delivery for a newly formed joint venture between Sigma and EQT Real Estate.

That joint venture, which is being supported by Homes England, was established to invest in private rental sector properties in affordable parts of Greater London within the M25, with a target of creating a portfolio with a value of more than £1bn.

Countryside said it was still seeing "attractive opportunities" for growth in its partnerships divisions, with a mix of private for sale, private rental sector and affordable homes allowing it to develop large sites more quickly in collaboration with its public sector partners.

As well as the initial sites, the agreement would provide for either party to bring forward additional development opportunities.

The board said the new agreement would facilitate further growth of the partnerships division in London as part of the strategy it outlined during its £250m equity placing in July.

As at 30 June, partnerships had 40,267 plots in its land bank or at preferred bidder stage, equivalent to nine years worth of work at 2019 volumes offering great visibility over the medium-term.

"We are delighted to have expanded our strategic relationship with Sigma and its new partner EQT Real Estate, to deliver much-needed private rental sector homes within London," said group chief executive officer Iain McPherson.

"Our partnerships business has a proven track record and, together with our clear strategy for growth, we look forward to continuing to work with our partners as we focus on the delivery of high quality and sustainable mixed-tenure communities."

At 0836 BST, shares in Countryside Properties were up 0.13% at 319p.