20 Sep 2018 07:00
20 September 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
&
Acquisition of Two Development Sites
Sigma, the PRS, residential development and urban regeneration specialist, is pleased to announce both the sale of a completed PRS site, to The PRS REIT plc ("the PRS REIT") for c. £10.3m, and the Group's acquisition of two additional development sites, which together have a total development cost of £17.6m.
The completed PRS site that has been acquired by the PRS REIT is located in Smethwick near Birmingham city centre, and comprises 63 newly-completed family rental homes providing a mix of 2, 3 and 4 bedroom homes. The annualised rental value of these homes is c. £0.6m per annum.
The two new sites that Sigma has acquired are located in Nuneaton, in the West Midlands, and Harlow, Essex, and will respectively deliver 50 and 28 new family homes, with a combined estimated rental value of c. £1.1m per annum. The PRS REIT has signed forward purchase agreements over both developments, with the sites expected to be acquired in the second half of 2019, once fully completed and let. The site in Essex is Sigma's first acquisition in the Southern region of England. Both sites are being developed by Sigma's lead construction partner, Countryside Properties.
Sigma now has five active PRS sites currently under construction, which are expected to be purchased by the PRS REIT, subject to the fulfillment of contracted terms. Two sites are expected to be completed by the end of 2018 and will comprise the balance of PRS REIT's First Acquisition Portfolio. The remaining three sites are due for completion in 2019. Sigma receives rental income from completed PRS homes up until each site is fully completed and subsequently acquired by the PRS REIT.
Up to a maximum of a third of the PRS REIT's new properties may be sourced through the purchase of fully completed PRS sites and the PRS REIT retains exclusive access to Sigma's PRS Platform.
Sigma expects to publish its interim results for the six months to 30 June 2018 on 25 September 2018.
Enquiries:
Sigma Capital Group plc | Graham Barnet, Chief Executive | T: 020 3178 6378 (today) | ||
Malcolm Briselden, Finance Director | T: 0333 999 9926 | |||
KTZ Communications | Katie Tzouliadis, Emma Pearson | T: 020 3178 6378 | ||
N+1 Singer(NOMAD and Broker) | James Maxwell, James Moat, Ben Farrow | T: 020 7496 3000 |
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 Sigma Capital Group plc and is The PRS REIT plc'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 plc 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, a further £250m was raised through an additional Placing. Both fundraisings were supported by the UK Government's Homes England (formerly Homes and Communities Agency), with direct investments which together totaled c. £30 million. Together with debt facilities, The PRS REIT plc's total resource is expected to grow to c. £900m.