LONDON (Alliance News) - Residential and urban remuneration specialists Sigma Capital Group PLC Monday said it has agreed to acquire its first London site for its private rented sector residential portfolio through a deal with Barking Riverside Ltd.
Barking Riverside Ltd is a joint venture company between Greater London Authority and Bellway Homes PLC. The financial terms of the deal have not been disclosed.
Sigma will acquire a site in east London earmarked for 318 new homes. It is located within the Barking Riverside development which is a 443 acre site with outline planning permission for one of the largest residential regeneration schemes in the UK.
Sigma said it will cost around GBP50 million to build the homes on the site.
The company has signed a Head of Terms, with an exclusivity period which runs until March 31 2015, that allows it or its funding partners to acquire the site and develop the apartment blocks. The company plans to construct a high percentage of three bedroom family units.
Sigma expects to start work on the site in late 2014 subject to the completion of detailed site acquisition agreements and funding arrangements. The construction delivery timeframe is likely to be approximately 24 months.
The stock was trading at 66.50 pence Monday morning, up 1.50 pence or 2.3%.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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