(Alliance News) - Countryside Properties PLC on Monday said it signed a new collaboration agreement with private rental sector homes developer Sigma Capital Group PLC.
Under the agreement, the two companies will work together to build up to 5,000 new PRS homes across several regions in England over the next three years. The deal builds on an agreement signed by Brentwood, Essex-based Countryside and Manchester-based Sigma Capital in 2018, which also was for the development of 5,000 homes.
Countryside and Sigma Capital first came together in 2014, for the delivery of 927 homes that had been extended in 2016, adding 900 homes.
Looking ahead, Countryside said it is still on-track to deliver its target 8,000 homes per annum in Partnerships by 2023.
"We are pleased to be furthering our long-standing partnership with Sigma Capital, who shares our commitment to delivering high-quality, professionally managed rental homes for families across the country. We continue to see attractive opportunities within our Partnerships business to deliver much needed, high-quality and sustainable mixed-tenure communities in the UK," said Countryside CEO Iain McPherson.
Also on Monday, Sigma Capital said it has negotiated and secured the acquisition of a fully-let development of 123 rental homes in Greater Manchester for PRS REIT PLC from BlackRock Real Assets for GBP19.0 million.
The acquisition brings the total number of completed homes in PRS REIT's portfolio to 3,163, providing as estimated rental value of GBP29.4 million per annum.
"The acquisition of this new development of purpose-built, high-quality rental homes brings the PRS REIT's portfolio of completed assets to over 3,100 homes and accelerates income delivery. The company is now in the final stages of delivering its initial portfolio of approximately 5,200 rental homes, with around 2,000 homes currently in varying stages of development. They are expected to be completed in late 2021," said PRS REIT Chair Steve Smith.
Shares in Countryside Properties were down 3.7% at 423.80 pence on Monday in London. Sigma Capital's shares were untraded at 125.10p, and PRS REIT's shares were up 0.3% at 76.85p.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Prs Reit (PRSR)