SGM.L Regulatory News (SGM)

26 Jun 2009 07:00



SGM

SIGMA CAPITAL GROUP PLC

("Sigma")

Announces

New Property Limited Partnership

SI Recovery Fund No 1 

Sigma, the specialist asset management and advisory group, is pleased to announce that its property investment subsidiary, Strategic Investment Management Ltd ("SI"), has exchanged contracts today on the acquisition of commercial offices in Cardiff let to the Environment Agency, the UK Government Agency.

The property is being acquired through SI's latest limited partnership, the SI Recovery Fund No 1 ("the Fund") and the Fund is expected to be capitalised at approximately £5.4m.  Legal completion of the acquisition is anticipated by the end of August 2009. The acquisition is being funded by bank debt and approximately £2.8m of third party investor equity. The transaction is expected to generate gross fees for Sigma of approximately £0.48m in the second half of 2009.

Situated close to Cardiff city centre, the property is a seven-storey building that has been extended and refurbished to the tenant's specification. The Fund is acquiring the freehold of the property with the benefit of the lease with the Environment Agency which has a further nine years to run, expiring in 2018.

Graham Barnet, CEO of Sigma, commented:

"I am very pleased to announce the launch of SI Recovery Fund No 1. We have looked carefully at investment opportunities in the commercial property marketplace and this acquisition delivers our criteria of a quality building with a strong tenant and the potential for attractive returns for its investors."

Enquiries

Company website: www.sigmacapital.co.uk