LONDON (Alliance News) - Sigma Capital Group PLC on Friday said it intends to buy three private rented sector sites in the North West and West Midlands for an undisclosed sum.
The residential development firm said it expects to deliver an additional 214 new rental homes at a total development cost about GBP31.0 million. Sigma said it will develop new sites through its private rented sector delivery platform.
Countryside Properties will undertake construction, the company said, which is anticipated to be completed next year. Sigma also said that real estate investment trust PRS REIT PLC retains a right to acquire sites upon completion.
In addition, Sigma has four sites under construction with development cost around GBP38.0 million, which are expected to be purchased by PRS at the end of 2018.
In 2017, the group constructed and sold four sites to PRS for GBP31.7 million.
Looking ahead, the company said that it expects to buy additional sites in 2018, which will provide it with rental income from completed homes during the delivery phase until the ultimate sale of the completed site.
"We are very pleased to be announcing our acquisition of three additional sites, which will deliver a combined 214 new rental homes in the North West and West Midlands," said Chief Executive Graham Barnet.
"We expect to make further acquisitions in 2018 as we continue, with our partners, to drive the large scale construction of new rental homes across England," Barnet added.
Shares in Sigma were trading 5.3% higher at 124.20 pence per share on Friday.
