21 Dec 2020 07:00
21 December 2020
AIM: SGM
SIGMA CAPITAL GROUP PLC
("Sigma" or the "Company")
The private rented sector and urban regeneration specialist
Completion of Acquisition of Fully-let Development of New Homes on behalf of The PRS REIT plc
Sigma, the PRS, residential development and urban regeneration specialist, is pleased to announce that it has negotiated and completed the acquisition of a fully-let development of new rental homes in Greater Manchester for £19.0m from BlackRock Assets on behalf of The PRS REIT plc ("PRS REIT"). The transaction marks the full commitment of the PRS REIT's funding resource of £900m (gross).
The development, which was independently valued by Savills prior to acquisition, generates a passing rent of c. £1.16m per annum, and accelerates income delivery for the PRS REIT. It brings the total number of completed homes in the PRS REIT's portfolio to 3,163, providing an estimated rental value ("ERV") of c. £29.4m per annum. An additional c. 2,000 homes are currently under way at varying stages of development, which take the PRS REIT to its investment objective of establishing an initial portfolio of c. 5,200 new rental homes, with an ERV of £50m per annum when fully completed and let.
The newly acquired development was sourced and completed for Blackrock by Sigma's PRS property platform in June 2019, and was constructed to the same specification as other sites in the PRS REIT's portfolio. The homes are rented under the 'Simple Life' brand.
Sigma's subsidiary, Sigma PRS Management Limited, is Investment Adviser to the REIT, sourcing investments, managing assets and providing advice on a day-to-day basis.
A copy of the announcement issued by PRS REIT is below and can be accessed via the link below.
https://www.theprsreit.com/page/regulatory-news-service
Enquiries:
Sigma Capital Group plc | Graham Barnet, Chief Executive | T: 020 3178 6378 (today) |
Mike McGill, Group Chief Financial Officer
| T: 0333 999 9926 | |
KTZ Communications | Katie Tzouliadis, Dan Mahoney | T: 020 3178 6378 |
N+1 Singer(NOMAD and Broker) | James Maxwell, James Moat | T: 020 7496 3000 |
NOTES TO EDITORS
About Sigma Capital Group plc
www.sigmacapital.co.uk
Sigma Capital Group plc ("Sigma") is a PRS, residential development, and urban regeneration specialist, with offices in Edinburgh, Manchester and London. Sigma's principal focus is on the delivery of large scale housing schemes for the private rented sector. The Company has a well-established track record in assisting with property related regeneration projects in the public sector, acting as a bridge between the public and private sectors.
Sigma has created an unrivalled PRS Platform, which sources sites and brings together construction resource to develop them, enabling Sigma to deliver an integrated solution to partners. As well as sourcing sites and managing all stages of the planning and development process, Sigma also manages the rental of completed homes through its award-winning rental brand, 'Simple Life'.
The Company's subsidiary, Sigma PRS Management Limited, is Investment Adviser to The PRS REIT plc. In September 2020, the Company launched a joint venture with EQT Real Estate, the real estate platform of global investment firm EQT to establish a £1bn portfolio of high quality, new-build homes for private rental in Greater London.
21 December 2020
PRSR.L
The PRS REIT plc
(the "Company" or "PRS REIT")
Acquisition of Fully-let Development of New Homes with ERV of £1.16m p.a.
for £19.0m
Marks Full Commitment of £900m (gross) Funding Resource
The PRS REIT, the closed-ended real estate investment trust that invests in new-build homes for the Private Rented Sector, is pleased to announce the acquisition of a fully-let development of 123 new homes in Greater Manchester for £19.0m from BlackRock Real Assets. The development generates a passing rent of approximately £1.16m per annum, and was independently valued by Savills prior to acquisition.
The transaction marks the full commitment of the PRS REIT's funding resource of £900m (gross), and accelerates income delivery for the Company. This is in line with the stated intention of the Company's Investment Adviser, Sigma PRS Management Limited, to acquire completed assets with the balance of the Company's available resources.
It brings the total number of completed homes in the Company's portfolio to 3,163, providing an estimated rental value ("ERV") of approximately £29.4m per annum. Around an additional 2,000 homes are currently under way at varying stages of development. This delivery will take the Company's portfolio to approximately 5,200 homes, with an ERV of approximately £50.0m per annum when fully completed and let.
The development is located in a suburb north west of Manchester in Holyoake Road, Walkden, and was sourced and completed for Blackrock in June 2019 by Sigma Capital Group plc's PRS property platform. It comprises a mix of 63 three-and-four-bedroom houses and 60 two-bedroom apartments, close to excellent local amenities, with easy access via rail to Manchester City Centre. The development was constructed by Sigma Capital Group plc's principal housebuilding partner, Countryside Properties to the same specification as other sites in the PRS REIT's portfolio. The homes are rented under the 'Simple Life' brand.
Steve Smith, Chairman of The PRS REIT plc, said,
"The acquisition of this new development of purpose-built, high-quality rental homes brings The PRS REIT plc'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."
For further information, please contact:
The PRS REIT plcSteve Smith, Non-executive Chairman
| Tel: 020 3178 6378 (c/o KTZ Communications) |
Sigma PRS Management LimitedGraham Barnet, Mike McGill
| Tel: 0333 999 9926 |
N+1 Singer James Maxwell, James Moat, Sebastian Burke
| Tel: 020 7496 3000
|
Panmure Gordon (UK) Limited Chloe Ponsonby(Corporate Broking) Alex Collins (Corporate Finance)
| Tel: 020 7886 2500 |
G10 Capital Limited (part of the IQEQ Group as AIFM) Paul Turner
| Tel: 020 3745 2826 |
KTZ Communications Katie Tzouliadis, Dan Mahoney | Tel: 020 3178 6378 |
NOTES TO EDITORS
About The PRS REIT plc(www.theprsreit.com)
The PRS REIT plc is a closed-ended real estate investment trust established to invest in the Private Rented Sector and to provide shareholders with an attractive level of income together with the potential for capital and income growth. The Company is investing £0.9bn in a portfolio of high quality homes for private rental across the regions, having raised a total of £500m (gross) through its Initial Public Offering, on 31 May 2017, and a subsequent placing in February 2018. Both fundraisings were supported by the UK Government's Homes England with direct investments.
LEI: 21380037Q91HU97WZX58
About Sigma Capital Group plcwww.sigmacapital.co.uk
Sigma Capital Group plc ("Sigma") is a PRS, residential development, and urban regeneration specialist, with offices in Edinburgh, Manchester and London. Sigma's principal focus is on the delivery of large scale housing schemes for the private rented sector. The Company has a well-established track record in assisting with property related regeneration projects in the public sector, acting as a bridge between the public and private sectors.
Sigma has created an unrivalled PRS Platform, which sources sites and brings together construction resource to develop them, enabling Sigma to deliver an integrated solution to partners. As well as sourcing sites and managing all stages of the planning and development process, Sigma also manages the rental of completed homes through its award winning rental brand 'Simple Life'. The Company's subsidiary, Sigma PRS Management Limited, is Investment Adviser to The PRS REIT plc.
About Sigma PRS Management Limited
Sigma PRS Management Limited is a wholly-owned subsidiary of AIM-quoted Sigma Capital Group plc and is Investment Adviser to The PRS REIT plc. It sources investments and operationally manages the assets of The PRS REIT plc and advises the Alternative Investment Fund Manager ("AIFM") and The PRS REIT plc on a day-to-day basis in accordance with The PRS REIT plc's Investment Policy. The Investment Manager is G10 Capital Limited. Sigma PRS Management Ltd is an appointed representative of G10 Capital Limited, which is authorised and regulated by the Financial Conduct Authority (FRN:648953).