PRS REIT PLC (The) Acquisition of Sites (3178B)
20 September 2018 - 4:00PM
UK Regulatory
TIDMPRSR
RNS Number : 3178B
PRS REIT PLC (The)
20 September 2018
20 September 2018
PRSR.L
The PRS REIT plc
(the "Company" or the "PRS REIT")
Acquisition of Two PRS Sites
and
Forward Contract Agreements on Three Further PRS Sites
The PRS REIT, the closed-ended real estate investment trust
established to invest in new-build homes in the Private Rented
Sector ("PRS"), is pleased to announce that it has acquired a
development site for the construction of 145 new family rental
homes, with a gross development cost of c. GBP15.2m, and purchased
a newly-completed PRS site, comprising 63 family homes for c.
GBP10.3m.
The development site is located in Wigan, in Greater Manchester,
and is expected to generate c. GBP0.95m of rental income per annum
once fully let. Construction on the site is expected to be
completed in the first half of 2020. Sigma PRS Management Limited,
the PRS REIT's Investment Advisor, has sourced this investment and
will manage the delivery of the new homes, and Countryside
Properties is the construction partner.
The newly-completed PRS development is situated in Smethwick,
near Birmingham city centre, and has been acquired from Sigma
Capital Group plc ("Sigma Capital"). It generates an annualised
rental income of c. GBP0.6m per annum from a mix of 2, 3 and 4
bedroom homes. It was independently valued by Savills.
In addition, the PRS REIT has agreed a forward contract to
acquire a development site in Harlow, Essex for a further c. 94
units, with a total delivery cost of c. GBP27.3m. The estimated
rental value ("ERV") of these homes once let is c. GBP1.6m per
annum. As above, Sigma PRS Management Limited will manage the
delivery, with Countryside Properties as construction partner.
The PRS REIT has also signed forward purchase agreements with
Sigma Capital to acquire two further PRS sites that are currently
being developed. The two sites, in Nuneaton in the West Midlands,
and Harlow, Essex, will comprise 50 and 28 units respectively, and
are expected to be completed in the second half of 2019. The
combined ERV is c. GBP1.1m per annum.
Following the acquisitions, the PRS REIT has 30 sites, either
completed or under construction, which equates to approximately c.
2,130 new family homes. The gross development cost of these sites
is c. GBP331.0m and the homes have a combined ERV of c. GBP20.5m
per annum.
The Company expects to publish its audited results for its
maiden financial period, covering the 13 months to 30 June 2018, on
10 October 2018. At the same time, it will provide its first
quarterly update for the current financial year.
For further information, please contact:
The PRS REIT plc Tel: +44 (0)20 3178 6378
Steve Smith, Non-executive Chairman
Sigma PRS Management Limited Tel: +44 (0)333 999 9926
Graham Barnet
Graeme Hogg
N+1 Singer Tel: +44 (0)20 7496 3000
James Maxwell, James Moat, Ben Farrow
Stifel Tel: +44 (0)20 7710 7600
Mark Young, Neil Winward, Gaudi Le Roux
G10 Capital Limited (AIFM) Tel: +44 (0)20 3696 1302
Gerhard Grueter, Anthony Wood, Gaia Udage
KTZ Communications Tel: +44 (0)20 3178 6378
Katie Tzouliadis, Emma Pearson
NOTES TO EDITORS
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
GBP500m (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 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 Investment Adviser to The
PRS REIT plc. 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 plc's Investment Policy. The Investment Adviser
is an appointed representative (reference number: 776293) of the
AIFM.
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END
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