Wednesday, June 19, 2013
Sigma Capital Group plc ("Sigma")
Re: Regeneration activities in Liverpool and North Solihull
Sigma, the property and urban regeneration specialist, is pleased to announce an update on its regeneration activities in Liverpool and North Solihull.
Sigma announces that work is about to commence on the construction of the fourth phase of the Norris Green development, part of the £100m new housing scheme being undertaken by Regeneration Liverpool (the partnership established between Liverpool City Council and Sigma's subsidiary, Sigma Inpartnership Ltd, to assist with the regeneration of Liverpool). For this new phase, Sigma will receive c. £0.6m, equivalent to around 3.4% of the gross development costs, with approximately half being paid over the next three years and the balance on completion of the sale of the homes. It should be noted that this scheme is outside the proposed construction, announced on 10 May 2013, of 1,000 new rental homes in Liverpool under a major new funding model being developed by Sigma.
This fourth phase of the Norris Green development comprises the construction of 167 homes, 107 homes to be sold privately and 60 homes for affordable rent, in Norris Green Village, located five miles from Liverpool City Centre. The construction is being undertaken by Countryside Properties (UK) Ltd on behalf of Countryside Sigma Ltd, the venture company established between Sigma Inpartnership Ltd and house building specialist Countryside Properties (UK) Ltd. Construction of the new homes is expected to be completed in December 2017.
Sigma is also pleased to report that the 30,000 sq ft development at North Arran Way, Smith Wood Village Centre in North Solihull is progressing well and to budget, following the completion of its forward sale, which was announced on 7 February 2013. Solihull Inpartnership Ltd, a subsidiary of Sigma Inpartnership Ltd, is the developer and has commenced the drawdown of the £4m funding facility from the Government's Growing Places Fund to finance the cash flow required during the remainder of the construction of the development. Construction is due to be completed in January 2014.
Graham Barnet, Chief Executive of Sigma, commented,
"This fourth phase is another major step in the redevelopment of Norris Green and once completed will take the number of new homes built through Regeneration Liverpool, the partnership we have established with Liverpool City Council to some 345 units. In total, Norris Green has outline planning consent for around 800 new homes and we look forward to driving forward this major regeneration scheme to its next stage.
I am also pleased to report that the North Arran Way property development in North Solihull is progressing well. The development is part of a major programme to renew the North Solihull area and we are working in partnership with Solihull Metropolitan Borough Council and others to achieve the Council's regeneration objectives."
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 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.
About the North Solihull Partnership
The North Solihull Partnership is a limited liability partnership consisting of Sigma's subsidiary Sigma Inpartnership, Bellway, West Mercia Housing and Solihull Metropolitan Borough Council. The partnership is five years into a 20-year regeneration programme for the North Solihull area, which will encompass the construction of:
• 4,400 new housing units,
• 10 primary schools,
• five new village centres (including health, retail and community facilities),
• local employment and training facilities
• a new college and the refurbishment of secondary schools.
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 Growing Places Fund
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.