PRS ("Private Rented Sector")
Sigma has been working with its House Building and local authority partners to build a large scale PRS model that is capable of delivering in excess of 20,000 new rental homes throughout the key regional cities in England. Sigma is responsible for the delivery of the land assets alongside its House Building and Council partners, management of the planning process and construction process with its House Building partners, Countryside Properties (UK) Limited and Keepmoat Limited. Once constructed Sigma manage the lettings and property management of the rental properties through its partner SDL (Shepherds Direct Limited). This provides a complete solution for investors looking to access residential land, construct rental properties and manage them for rental for the long term. We believe this is the only cohesive platform of its kind to deliver large scale PRS housing in the UK.
We announced in November 2014 a funding relationship with Gatehouse Bank plc. The first tranche of the Gatehouse deal delivers 918 new homes across 14 individual sites in Greater Manchester and the Liverpool area and commenced construction in December 2014 and is due to be fully complete by the end of 2016. This expanded PRS portfolio is being procured as before with our house building partner, Countryside Properties, and lettings management partner, SDL. A dedicated lettings brand, Difrent, www.livedifrent.com has been established for the Gatehouse portfolio as we look to create a substantial cohesive PRS portfolio focused on family homes in the UK regions over the next five years.
In December 2015, we launched a second phase of PRS homes, with a new fund, UK PRS Properties, which is supported principally by the Kuwait Investment Authority and institutional shareholders from the State of Kuwait. This second phase comprises a further 813 rental properties across nine sites and has a total development cost of £96m. We commenced construction on the first of these sites in December 2015 and will have acquired and be into construction on all these sites by the end of Q3 2016. We have our first tenants already in residence from this new portfolio.
In addition, as announced on 4th December 2015, Sigma is constructing its first sites for its own portfolio of PRS assets and expects to build a substantial portfolio of assets on its own balance sheet alongside the significant scale it will be delivering and managing for its investment partners. We are targeting 550 new homes fully built and let during 2017 and we are well on with our first sites and expect initial completions during the summer of 2016 and our first complete site by September 2016. Our intial assets will be five sites in the North West and Sheffield for 346 units with a construction value of circa £46m. This together with our first two phases managed for our investor partners will bring our total housing delivery to in excess of 2,500 homes. We have already acquired our first four sites and are well into the construction phase.
In furtherance of our relationships with progressive Councils, we announced on June 8 2015 that we had entered into an exclusivity agreement with the Sheffield Housing Company Limited ("SHC") for the provision of new Private Rented Sector ("PRS") homes in the city of Sheffield. SHC is a long term partnership between Sheffield City Council, Keepmoat Limited, the regeneration specialist and developer, and Great Places Housing Group, the registered housing provider, to build in excess of 2,300 new homes across seven popular neighbourhoods in Sheffield. This agreement brings another major English city into Sigma’s pipeline for PRS and is in line with the Group’s objective of building a substantial PRS portfolio across multiple sites in the UK. We are pleased that we acquired and started construction on our first site in Sheffield in July 2016 with further sites in the pipeline.
Our target is to be building across four regions in the UK simultaneously with our two House Building partners who are providing construction resource and land supply along side our Council relationships. Our construction partners also provide complimentary geographic spread within their business covering the key cities and economic conurbations in England allowing Sigma access to a broad spread of opportunities for its multi city, multi site model for PRS family homes.
See how we work with Countryside Properties - CLICK HERE