TIDMSGM
RNS Number : 2402J
Sigma Capital Group PLC
21 December 2020
21 December 2020
AIM: SGM
SIGMA CAPITAL GROUP PLC
("Sigma" or the "Company")
The private rented sector and urban regeneration specialist
Completion of Acquisition of Fully-let Development of New Homes
on behalf of The PRS REIT plc
Sigma, the PRS, residential development and urban regeneration
specialist, is pleased to announce that it has negotiated and
completed the acquisition of a fully-let development of new rental
homes in Greater Manchester for GBP19.0m from BlackRock Assets on
behalf of The PRS REIT plc ("PRS REIT"). The transaction marks the
full commitment of the PRS REIT's funding resource of GBP900m
(gross).
The development, which was independently valued by Savills prior
to acquisition, generates a passing rent of c. GBP1.16m per annum,
and accelerates income delivery for the PRS REIT. It brings the
total number of completed homes in the PRS REIT's portfolio to
3,163, providing an estimated rental value ("ERV") of c. GBP29.4m
per annum. An additional c. 2,000 homes are currently under way at
varying stages of development, which take the PRS REIT to its
investment objective of establishing an initial portfolio of c.
5,200 new rental homes, with an ERV of GBP50m per annum when fully
completed and let.
The newly acquired development was sourced and completed for
Blackrock by Sigma's PRS property platform in June 2019, and was
constructed to the same specification as other sites in the PRS
REIT's portfolio. The homes are rented under the 'Simple Life'
brand.
Sigma's subsidiary, Sigma PRS Management Limited, is Investment
Adviser to the REIT, sourcing investments, managing assets and
providing advice on a day-to-day basis.
A copy of the announcement issued by PRS REIT is below and can
be accessed via the link below.
https://www.theprsreit.com/page/regulatory-news-service
Enquiries:
Sigma Capital Group Graham Barnet, Chief Executive T: 020 3178 6378 (today)
plc
Mike McGill, Group Chief Financial T: 0333 999 9926
Officer
KTZ Communications Katie Tzouliadis, Dan Mahoney T: 020 3178 6378
N+1 Singer James Maxwell, James Moat T: 020 7496 3000
(NOMAD and Broker)
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 PRS 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. In September 2020, the
Company launched a joint venture with EQT Real Estate, the real
estate platform of global investment firm EQT to establish a GBP1bn
portfolio of high quality, new-build homes for private rental in
Greater London.
21 December 2020
PRSR.L
The PRS REIT plc
(the "Company" or "PRS REIT")
Acquisition of Fully-let Development of New Homes with ERV of
GBP1.16m p.a.
for GBP19.0m
Marks Full Commitment of GBP900m (gross) Funding Resource
The PRS REIT, the closed-ended real estate investment trust that
invests in new-build homes for the Private Rented Sector, is
pleased to announce the acquisition of a fully-let development of
123 new homes in Greater Manchester for GBP19.0m from BlackRock
Real Assets. The development generates a passing rent of
approximately GBP1.16m per annum, and was independently valued by
Savills prior to acquisition.
The transaction marks the full commitment of the PRS REIT's
funding resource of GBP900m (gross), and accelerates income
delivery for the Company. This is in line with the stated intention
of the Company's Investment Adviser, Sigma PRS Management Limited,
to acquire completed assets with the balance of the Company's
available resources.
It brings the total number of completed homes in the Company's
portfolio to 3,163, providing an estimated rental value ("ERV") of
approximately GBP29.4m per annum. Around an additional 2,000 homes
are currently under way at varying stages of development. This
delivery will take the Company's portfolio to approximately 5,200
homes, with an ERV of approximately GBP50.0m per annum when fully
completed and let.
The development is located in a suburb north west of Manchester
in Holyoake Road, Walkden, and was sourced and completed for
Blackrock in June 2019 by Sigma Capital Group plc's PRS property
platform. It comprises a mix of 63 three-and-four-bedroom houses
and 60 two-bedroom apartments, close to excellent local amenities,
with easy access via rail to Manchester City Centre. The
development was constructed by Sigma Capital Group plc's principal
housebuilding partner, Countryside Properties to the same
specification as other sites in the PRS REIT's portfolio. The homes
are rented under the 'Simple Life' brand.
Steve Smith, Chairman of The PRS REIT plc, said,
"The acquisition of this new development of purpose-built,
high-quality rental homes brings The PRS REIT plc's portfolio of
completed assets to over 3,100 homes and accelerates income
delivery.
"The Company is now in the final stages of delivering its
initial portfolio of approximately 5,200 rental homes, with around
2,000 homes currently in varying stages of development. They are
expected to be completed in late 2021."
For further information, please contact:
The PRS REIT plc Tel: 020 3178 6378 (c/o
Steve Smith, Non-executive Chairman KTZ Communications)
Sigma PRS Management Limited Tel: 0333 999 9926
Graham Barnet, Mike McGill
N+1 Singer Tel: 020 7496 3000
James Maxwell, James Moat, Sebastian Burke
Panmure Gordon (UK) Limited Tel: 020 7886 2500
Chloe Ponsonby(Corporate Broking)
Alex Collins (Corporate Finance)
G10 Capital Limited (part of the IQEQ Group Tel: 020 3745 2826
as AIFM)
Paul Turner
KTZ Communications Tel: 020 3178 6378
Katie Tzouliadis, Dan Mahoney
NOTES TO EDITORS
About The PRS REIT plc
( www.theprsreit.com )
The PRS REIT plc 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. The Company is investing
GBP0.9bn in a portfolio of high quality homes for private rental
across the regions, having 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 ("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 PRS 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.
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).
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