(Alliance News) - Housebuilder Countryside Properties PLC on Tuesday said it has expanded its relationship with Sigma Capital Group PLC to deliver new-build homes in London for the private rental sector.
Under the agreement, Countryside's Partnerships division will initially deliver 361 new-build homes for private rental. The new private rental homes will comprise the first phase of housing delivery for a newly formed joint venture between Sigma Capital and EQT Real Estate, the real estate platform of global investment firm EQT.
The joint venture, which is being supported by Homes England, has been established to invest in private rental sector properties in affordable parts of greater London within the M25 motorway, with a target of creating a portfolio with a value in excess of GBP1 billion.
Countryside said the new agreement will help facilitate further growth of its Partnerships division in London. As at June 30, the Partnerships division had 40,267 plots in its land bank or at preferred bidder stage equivalent to nine years' worth of work at 2019 volumes.
Sigma Capital separately said that the joint venture with EQT Real Estate is targeting the establishment of an initial portfolio of approximately 3,000 homes.
Under the partnership, EQT Real Estate and Sigma initially have committed equity of GBP300 million and GBP16 million, respectively, to the joint venture.
Sigma Capital said the joint venture will acquire five sites from Countryside and include locations in Ealing, Enfield and Havering. In addition, two further sites currently under development by Sigma Capital, in Barking and Havering, will be acquired by the joint venture on completion.
Shares in FTSE 250-listed Countryside were up 1.2% at 322.40 pence each in London Tuesday afternoon. Sigma Capital shares were up 15% at 112.76p each.
By Tapan Panchal; tapanpanchal@alliancenews.com
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