Thursday, February 07, 2013
SIGMA CAPITAL GROUP PLC
("Sigma" or "the Group")
Re: North Solihull Partnership - Completion of Forward Sale of North Arran Way Development
Sigma, the finance, property and urban regeneration specialist, is pleased to announce further progress with its North Solihull Partnership, completing the forward sale of the North Arran Way, Smiths Wood Village Centre development in North Solihull, which will generate profit for Sigma of c. £225,000 over the next 12 months.
The North Arran Way property development comprises a 30,000 sq ft, two storey commercial development, with 16,000 sq ft of office accommodation and eight retail units. The office space accounts for 60% of the rent roll and has been let to the Solihull Metropolitan Borough Council on a 15 year lease while the retail units have been let to Boots, Spar, Greggs and local retailers. Work on the development is due to commence in February 2013 and completion expected in early 2014.
In addition to securing the forward sale of the development, Sigma has been responsible for obtaining planning permission and securing five key pre-lettings which generate 90% of the total income for the development. Sigma is also procuring the construction contract and finance for the build phase of the development. To this end, Sigma has secured a £4m funding facility from the Government's Growing Places Fund which will cover cash flow required during the construction of the development.
Sigma is also currently working on the delivery of infrastructure works which will facilitate the development of the next urban centre in North Solihull at Craig Croft. The Craig Croft development comprises a new medical centre, mixed office and retail development and an enterprise centre for the local community. The infrastructure works along with the construction of the enterprise centre are due to commence in March 2013 and complete by April 2014.
Graham Barnet, Chief Executive of Sigma, commented,
"I am pleased with the progress that we are making with the North Solihull Partnership, one of our three unique council partnerships. The forward sale of the North Arran Way development represents further momentum and triggers the payment of fees to Sigma. This development is part of our wider work with Solihull Metropolitan Borough Council and our other partners in a major programme to renew the North Solihull area over the next fifteen years or so."
Sigma Capital Group plc
Graham Barnet, Chief Executive
Marilyn Cole, Finance Director
T: 0131 220 9444
Katie Tzouliadis/ Alex Shilov
T: 020 3178 6378
N+ 1 Singer
James Maxwell/Nick Donovan
T: 0207 496 3000
Company website: www.sigmacapital.co.uk
About the North Solihull Partnership
The North Solihull Partnership has to date delivered approximately 1,000 new homes and three primary schools, with a fourth under construction. Sigma Inpartnership manages the schools delivery programme, the village centres and associated infrastructure. Sigma Inpartnership is also responsible for the delivery of the commercial development across the area for an agreed fee and priority profit arrangement.
About Sigma Inpartnership
Sigma InPartnership has secured three partnerships, with Liverpool City Council, Solihull Metropolitan Borough Council and Salford City Council, each ranging from 10 to 20 years' duration. The partnerships hold long term option arrangements with the respective local authorities for a mix of residential, commercial, education and health opportunities. In total, the partnerships provide for the delivery of over 10,000 new homes, a significant number of new retail centres, health/medical centres, schools and mix of retail/leisure facilities. The total development value of the opportunities held within the three partnerships is estimated at well over £2 billion.
About Growing Places Funding
The Growing Places Fund was set up by the Department for Communities and Local Government with the aim of helping to kick start the development of 'shovel ready' projects that create employment during the construction phase and provide new infrastructure and buildings which will enhance the community and help to create and preserve longer term job opportunities. The funding facility is being administered by Birmingham City Council on behalf of the Growing Places Fund.