SGM.L Regulatory News (SGM)

15 June 2018

AIM: SGM

SIGMA CAPITAL GROUP PLC

("Sigma" or the "Group" or the "Company")

The private rented sector ("PRS") and urban regeneration specialist

Sale of completed PRS site to The PRS REIT plc

Sigma, the PRS, residential development and urban regeneration specialist, is pleased to announce the sale of a completed PRS site to The PRS REIT plc ("the PRS REIT") for c.£9.08m. The site was independently valued on behalf of the PRS REIT by Savills.

Situated in Greater Manchester, the site comprises 59 newly built family rental homes, with a mix of 2, 3 and 4 bedroom homes. The homes are fully let, with demand strong, and the rental value of this portfolio is c. £0.54m per annum.

Sigma has a further six PRS sites currently under construction under a forward purchase agreement with the PRS REIT upon completion. Three of these sites are expected to be completed by the end of 2018 and will comprise the balance of PRS REIT's First Acquisition Portfolio, with the remaining three sites due for completion in 2019.

Up to a maximum of a third of the PRS REIT's new properties are expected to be sourced through the purchase of fully completed PRS sites and the PRS REIT retains exclusive access to Sigma's PRS Platform.

Graham Barnet, Chief Executive, of Sigma, commented:

"We are pleased to report the sale, to the PRS REIT, of our PRS site in Greater Manchester, which is completed and fully let. This is in line with the PRS REIT's strategy to acquire a certain proportion of completed PRS sites, alongside acquiring and developing sites. Our high quality new rental homes have been built principally for families and demand for the new homes, which are let under the Simple Life brand, has been strong. 

"We have a further six PRS sites under construction for onward purchase by the PRS REIT, which are due to complete during the course of this year and next, and we expect to commence further sites prior to the end of 2018 ."

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NOTES TO EDITORS

About Sigma Capital Group plc (www.sigmacapital.co.uk)

Sigma Capital Group plc is a private rented sector, 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. It 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. Its 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 the Company's Investment Adviser. It sources investments and manages the assets of The PRS REIT plc and advises the Alternative Investment Fund Manager ("AIFM") and the PRS REIT on a day-to-day basis in accordance with the PRS REIT's Investment Policy. The Investment Adviser is an appointed representative (reference number: 776293) of the AIFM.

About The PRS REIT plc(www.theprsreit.com)

The PRS REIT 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. In its Initial Public Offering, on 31 May 2017, the Company raised £250m (gross) of equity capital, and, on 20 February 2018, raised a further £250m through an additional Placing. Both fundraisings were supported by the UK Government's Homes England (formerly Homes and Communities Agency), with direct investments totaling c. £30 million.