14 Jan 2020 07:00
14 January 2020
AIM: SGM
SIGMA CAPITAL GROUP PLC
("Sigma" or the "Company")
The private rented sector and urban regeneration specialist
Trading Update
Sigma, the private rented sector ("PRS"), residential development and urban regeneration specialist, is pleased to provide a trading update for the financial year ended 31 December 2019.
As expected, delivery was stronger in the second half of the year than the first, and in particular in the fourth quarter. This resulted in a significant uplift in development fees and development profits half-year on half-year in addition to an increase in asset management income following a full year of Investment Adviser fees from The PRS REIT plc's ("REIT") £250m equity raise in February 2018. The Board therefore expects full year results to be in line with market expectations.
The results mainly reflect Sigma's ongoing role as Investment Adviser and Development Manager to the REIT. Over 840 new rental homes were delivered via Sigma's PRS platform for the REIT in 2019, with a combined estimated rental value of c. £7.9m per annum. Delivery included the sale by Sigma of two fully completed and let sites to the REIT, after independent valuations, for a total consideration of £20.9m.
At 31 December 2019, 3,328 homes were under development for the REIT, with an estimated rental value of £32.7m. These are located across 42 sites that, including the homes already completed on these sites, have a combined gross development cost of £584m. Sigma expects to deploy the full balance of the REIT's net available funding by the end of March 2020. Sigma currently has seven development sites that it is self-funding, with a combined gross development cost of £75.9m. Five of these are designed for purchase by the REIT, with the other two constituting Sigma's first sites in London.
The scope of Sigma's build-to-rent activities is growing, with a collaboration agreement covering Scotland and the acquisition of the Company's first sites in London, as announced on 25 September and 8 October 2019 respectively. The Board looks forward to providing a further update on these developments in due course.
Full year results are expected to be announced in April.
Enquiries:
Sigma Capital Group plc | Graham Barnet, Chief Executive | T: 020 3178 6378 (today) |
| Malcolm Briselden, Finance Director | T: 0333 999 9926 |
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KTZ Communications | Katie Tzouliadis, Dan Mahoney | T: 020 3178 6378 |
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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 ("Sigma") 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. In April 2019, Sigma launched the Sigma Scottish PRS Fund, the first dedicated vehicle to focus on the creation of new rental homes for families in the private rented sector in Scotland, and in October 2019 Sigma announced the expansion of its build-to-rent activities in London.
About Sigma PRS Management Ltd
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)
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. It has 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