Company Announcements

New Sigma funding model and Liverpool City Council

Friday, May 10, 2013


AIM: SGM

Sigma Capital Group plc
("Sigma")

New Sigma funding model and Liverpool City Council

Sigma, the property and urban regeneration specialist, is pleased to announce that Liverpool City Council has this morning approved the proposed construction of 1,000 new rental homes under a major new funding model being developed by Sigma, which is expected to be concluded in September. The new funding model under development is not limited to opportunities in Liverpool but is also intended to encompass residential rental investment opportunities across cities and major urban areas in the North West of England and the Midlands.

The proposed new homes approved by Liverpool City Council are part of the Council's wider objectives to deliver over 5,000 new and improved homes across Liverpool as part of its regeneration strategy for the City. In order to facilitate the construction of the 1,000 new homes, Liverpool City Council has resolved to allocate further development sites to Regeneration Liverpool (also known as the Liverpool Partnership, the partnership established between Liverpool City Council and Sigma's subsidiary, Sigma Inpartnership Ltd, to assist with the regeneration of the City).  The additional development sites will comprise a range of locations across Liverpool and the new homes will be made available to the private rental market over the next three years. Sigma via Regeneration Liverpool already holds outline planning consent for around 800 new homes in Norris Green, the 60 acre site which is being regenerated. 
It is intended that the major new housing scheme will be financed through an equity fund model, currently in development by Sigma and that Sigma will provide a professional long term management function to manage the completed units. This proposal has the potential to deliver a new professionally managed rented sector housing tenure model for Liverpool City.

Graham Barnet, Chief Executive, commented,

"I am delighted that Liverpool City Council has approved our innovative proposal to deliver 1,000 new rental homes through our new private equity funding model, which we are currently developing.  The model will also encompass residential rental investment opportunities in the Midlands and North West of England. We are aiming to bring the fund to fruition by the time of our half year results in September.

We are committed to assisting the Council with achieving its regeneration aims for Liverpool, including the construction of new homes and the redevelopment of commercial areas in the City."

D Sutherland

Enquiries

Sigma Capital Group plc
Graham Barnet, Chief Executive
Marilyn Cole, Finance Director
T: 0131 220 9444

Biddicks
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 Sigma Inpartnership

Sigma Inpartnership is a wholly owned subsidiary of Sigma and operates from offices in Manchester and Birmingham.  Sigma Inpartnership was established as an investment led property-related regeneration company, specialising in the creation of long term, asset-backed partnerships with the public sector.

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 over £2 billion.

About Regeneration Liverpool (also referred to as the Liverpool Partnership LLP)

Regeneration Liverpool is a limited liability partnership legally constituted as the Liverpool Partnership LLP and formed in March 2007 with Liverpool City Council. It has been established to re-develop any surplus land assets at the discretion of the Council.

Land in the Partnership can be developed using any combination of the following three scenarios: by the Liverpool Partnership - Sigma Inpartnership earns a management fee and participates in a profit share; by Sigma Inpartnership or an affiliate of Sigma Inpartnership - Sigma Inpartnership earns a fee and an agreed priority profit; or by the Liverpool Partnership selling a site on the open market - Sigma Inpartnership earns a percentage of the sales price achieved.  At least 20% of the land must be disposed of by sale on the open market.