TIDMSGM
RNS Number : 6552Z
Sigma Capital Group PLC
22 September 2020
22 September 2020
AIM: SGM
SIGMA CAPITAL GROUP PLC
("Sigma" or the "Company")
The private rented sector ("PRS") and urban regeneration
specialist
Sigma Capital and EQT Real Estate
launch GBP1bn Residential Joint Venture
3,000 new rental homes planned for Greater London
Sigma, the UK PRS, residential development and urban
regeneration specialist, is pleased to announce the launch of a
joint venture with EQT Real Estate, the real estate platform of
global investment firm EQT, to deliver high quality, new-build
homes for private rental in Greater London (the "Joint Venture" or
the "JV"). The Joint Venture is being supported by Homes England,
the housing agency of the UK Government, and is targeting the
establishment of an initial portfolio of approximately 3,000 homes
with a value in excess of GBP1bn.
The JV has been established to invest in new, high quality
build-to-rent ("BTR") residential apartment blocks and houses in
more affordable parts of Greater London. They will be predominantly
located in transport Zones 3-6 and in close proximity to transport
links, including train access to central London. Homes are expected
to be built and completed over a period of at least five years.
Homes will be let at market-rate rents under Sigma's 'Simple
Life London' brand. This new brand is an extension of Sigma's
existing 'Simple Life' rental brand and shares the same aim of
bringing a higher standard of customer care and convenience to the
private rental market. The JV aligns fully with EQT's focus on
responsible and sustainable investments that promote social
good.
Under the terms of the partnership, EQT Real Estate and Sigma
(the "Partners") have initially committed equity of GBP300m and
GBP16m respectively to the Joint Venture. Including gearing, it is
intended that the JV will have an initial capacity to establish an
investment portfolio of approximately 3,000 homes, with a total
value in excess of GBP1bn. Sigma anticipates leveraging its proven
delivery model to capture economies of scale and visibility. Sigma
will receive fees relating to the identification, delivery and
operational management of assets. Sigma will also retain a
performance-based incentive payment.
This mirrors Sigma's UK regional model, which has successfully
delivered in excess of 4,200 BTR homes so far over the last five
years, with these generating an annual rental income of around
GBP40m when fully let. In addition, Sigma currently has a further
2,900 homes under way, at varying stages of development in the UK
regions.
The JV launches with the acquisition of five sites from
Countryside Properties plc. The sites are expected to deliver 361
homes for a total gross development cost ("GDC") of GBP102m and
include locations in Ealing, Enfield and Havering. In addition, two
further sites currently under development by Sigma, at Fresh Wharf,
Barking, and Beam Park, Havering, will be acquired by the JV on
completion. This will add an additional GBP48m of assets to the JV.
The two sites together will comprise an additional 157 homes and
are expected to be completed in H1 2021.
The JV will invest in buildings with strong sustainability
credentials. Where possible, buildings will tap into local
community heating networks and will utilise photovoltaic panels.
The JV will also promote sustainable living practices within the
apartments themselves while the schemes will include ample cycle
storage and will typically be located near green outdoor areas, an
important wellness factor.
Sigma and EQT Real Estate are delighted to have secured direct
support from Homes England, the UK Government's housing body
responsible for increasing the number of new homes in England, with
an initial loan facility of GBP50m to assist with the delivery of
the initial acquisitions. All parties share the same vision of
delivering thousands of new rental homes in London where there is a
critical undersupply of affordable, high-quality rental
properties.
Graham Barnet, CEO of Sigma Capital Group plc, said:
"We are delighted to be expanding our delivery of new rental
homes in the UK with the launch of our London JV with EQT Real
Estate, a strong and visionary partner.
"Homes England, which has supported Sigma with every major
initiative to deliver the new housing that is much needed across
the country, is also providing invaluable backing to the JV. Once
again, Homes England is proving its commitment to supporting
organisations looking to deliver homes at scale in the UK. We are
also pleased to be working with Countryside Properties in Greater
London to replicate the success of our partnership in the
regions.
"We look forward to delivering thousands of high-quality,
affordable new rental homes across the Capital with our partners at
EQT Real Estate, and providing London renters with a higher
standard of customer care."
Ian Sutcliffe, Chairman of Sigma Capital Group plc, said:
"This JV with EQT Real Estate leverages Sigma's unrivalled
property platform and adds another important region to the
Company's area of activity."
Peter Shacalis, Director at EQT Partners and Head of UK, EQT
Real Estate, said:
"EQT Real Estate is thrilled to be entering the London
residential market, one with a severe supply shortage of
professionally managed, high quality, good value homes to rent,
with Sigma Capital. In addition to the initial seven schemes, we
are currently evaluating a growing pipeline of projects in Greater
London to build a large scale, resilient and downside-protected
institutional BTR portfolio with robust and diversified rental
income. EQT Real Estate looks forward to partnering with the Sigma
team to realise our shared vision over the coming years."
Rob Rackind, Partner at EQT Partners and Head of EQT Real
Estate, said:
"This marks an exciting entrance into the UK for EQT Real Estate
as it represents the first transaction in this market since the
group was formed in 2015. I can't think of a more compelling
investment opportunity at the moment than to deploy capital into
this high conviction strategy, and one that should deliver
significant social impact, by providing market-rate housing to
renters in affordable locations principally within Greater London
and its commuter towns with strong transport links."
Iain McPherson, Group Chief Executive, Countryside, said:
"We are delighted to have expanded our strategic relationship
with Sigma and its new partner, EQT Real Estate, to deliver
much-needed PRS homes within London. Our Partnerships business has
a proven track record and, together with our clear strategy for
growth, we look forward to continuing to work with our partners as
we focus on the delivery of high quality and sustainable
mixed-tenure communities."
UK Housing Minister Rt Hon Christopher Pincher MP said:
"This Government is committed to delivering 300,000 new homes a
year in England by the mid-2020s, ensuring everyone has the
opportunity for a decent and secure place to call home.
"These 3,000 new homes, backed by GBP50 million from our housing
accelerator Homes England, will help us deliver for families across
Greater London."
Simon Dudley, Interim Chair at Homes England, said:
"We are excited to be strengthening our work with Sigma Capital.
By supporting their Joint Venture with EQT Real Estate we are using
our resources to accelerate the delivery of much needed
high-quality rental accommodation and unlock substantial private
sector investment in the housing sector."
Enquiries:
Sigma Capital Group Graham Barnet, Chief Executive T: 020 3178 6378 (today)
plc
Mike McGill, Finance Director T: 0333 999 9926
EQT EQT Press Office T: +46 8 506 55 334
EQT UK media enquiries Greenbrook T: +44 20 7952 2000
KTZ Communications Katie Tzouliadis, Dan Mahoney T: 020 3178 6378
N+1 Singer James Maxwell, James Moat, T: 020 7496 3000
(NOMAD and Broker to Ben Farrow
Sigma)
NOTES TO EDITORS
About Sigma Capital Group plc
( www.sigmacapital.co.uk )
Sigma Capital Group plc ("Sigma") is a PRS, 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. The Company 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.
Sigma has created an unrivalled property platform, which sources
sites and brings together construction resource to develop them,
enabling Sigma to deliver an integrated solution to partners. As
well as sourcing sites and managing all stages of the planning and
development process, Sigma also manages the rental of completed
homes through its award-winning rental brand 'Simple Life'. The
Company's subsidiary, Sigma PRS Management Limited, is Investment
Adviser to The PRS REIT plc, the real estate investment trust that
is investing GBP0.9bn in a portfolio of high-quality new rental
homes for private rental across the regions.
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 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 EQT
( www.eqtgroup.com )
EQT is a differentiated global investment organization with more
than EUR 62 billion in raised capital and around EUR 40 billion in
assets under management across 19 active funds. EQT funds have
portfolio companies in Europe, Asia-Pacific and North America with
total sales of more than EUR 27 billion and approximately 159,000
employees. EQT works with portfolio companies to achieve
sustainable growth, operational excellence and market
leadership.
About EQT Real Estate
( www.eqtgroup.com/business-segments/real-assets/real-estate/
)
EQT Real Estate, part of EQT Partners and Investment Advisor to
EQT managed real estate funds, seeks direct and indirect
controlling interests in value-add real estate assets, portfolios,
operating companies and platforms across gateway cities in the UK
and Europe that offer significant potential for value creation
through repositioning, redevelopment, refurbishment and active
asset management. The EQT Real Estate Advisory Team comprises 26
experienced Investment Advisory Professionals working out of EQT's
offices in London, Madrid, Milan, Paris and Stockholm. The
Investment Advisory Team, which has access to the full EQT network
including 11 European offices and more than 500 EQT Advisors, has
experience analyzing and investing across the pan-European real
estate market and has, collectively, advised on over 130 real
estate projects in multiple asset classes across Europe.
Follow EQT on LinkedIn , Twitter , YouTube and Instagram
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
JVEEADNFADKEEAA
(END) Dow Jones Newswires
September 22, 2020 02:00 ET (06:00 GMT)
Sigma Capital (LSE:SGM)
Historical Stock Chart
From Apr 2024 to May 2024
Sigma Capital (LSE:SGM)
Historical Stock Chart
From May 2023 to May 2024