Re: The PRS REIT Maiden Update

Re: The PRS REIT Maiden Update

July 10, 2017


SIGMA CAPITAL GROUP PLC
(“Sigma” or the “Company” or together with its subsidiaries, the “Group”)

The private rented sector (“PRS”) and urban regeneration specialist

Re: The PRS REIT
Maiden Update

 

Sigma, the PRS and urban regeneration specialist, is pleased to highlight below The PRS REIT plc’s (“PRS REIT”) maiden update following its IPO on 31 May, which has been issued today.

Sigma’s subsidiary, Sigma PRS Management Limited, is Investment Adviser to the PRS REIT, which has been established to invest in new family PRS homes across the regions of England. The PRS REIT is utilising Sigma’s existing PRS platform, which has a £400m pipeline of opportunities identified and in the process of delivery.

 

Enquiries:

 

Sigma Capital Group plc
Graham Barnet, Chief Executive T: 020 3178 6378 (today)
Malcolm Briselden, Finance Director T: 0333 999 9926

 

KTZ Communications
Katie Tzouliadis, Emma Pearson T: 020 3178 6378

 

N+1 Singer (Nomad & Broker)
James Maxwell, Liz Yong T: 020 7496 3000

 

About Sigma Capital Group plc
www.sigmacapital.co.uk

Sigma is a private rented sector, 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. It 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. Its subsidiary, Sigma PRS Management Limited, has been appointed as Investment Adviser to The PRS REIT plc.

 


 

 

The PRS REIT plc
(the “Company” or the “PRS REIT”)

Maiden Update

The PRS REIT, the closed-ended real estate investment trust established to invest in new build homes in the Private Rented Sector (“PRS”) which was admitted to the Specialist Fund Segment of the London Stock Exchange’s Main Market on 31 May 2017, is pleased to provide its maiden update.

Immediately following its launch and as planned, the Company acquired 50 completed and fully let PRS homes comprising two and three bedroom family homes at Mackets Lane in Halewood, from Sigma Capital Group plc (“Sigma”) for a purchase price of £7.3 million. In line with the Company’s investment strategy to focus on sites in towns and cities in England outside London, which also follow the main rail and road infrastructure, the site is well situated for commuting into Liverpool City Centre and is also adjacent to a local primary school and nursery. The 50 units generate an annualised rent of approximately £0.45 million.

In addition, the Company entered into its first design and build contract with Countryside Properties plc for a development of PRS homes in Middleton, Rochdale with an estimated gross development cost of approximately £16.0 million. The site is four miles northeast of Manchester City Centre, and is well located for the M60 and wider motorway network. The first tenants are expected to take occupation in January 2018.

A further five design and build contracts, which together provide approximately 365 PRS units and have a combined gross development cost of approximately £53.0 million, are expected to be signed over the coming months. These sites are located in the North West and South Yorkshire.

Through the Investment Adviser, Sigma PRS Management Limited, a subsidiary of Sigma, the Company is assessing potential new sites and this is progressing very well, with additional opportunities now under review alongside the existing planned roll-out.

The Company looks forward to updating the market further in the Company’s next quarterly update, for the period to 30 September 2017.

Steve Smith, Non-executive Chairman, commented:

“We are very pleased with the PRS REIT’s strong start since its launch at the end of May, with the PRS REIT having hit its early milestones. The Company remains very well positioned for continuing progress, with further design and build contracts in preparation and additional opportunities under review alongside the existing planned roll-out. Demand for new family rental homes, our core target market, remains buoyant and we expect our high quality, professionally managed new homes to help fulfil the growing shortage of rental housing stock.”

 

For further information, please contact:

The PRS REIT plc
Tel: +44 (0)20 3178 6378
Steve Smith, Non-executive Chairman

Sigma PRS Management Limited
Graham Barnet
Graeme Hogg
Tel: +44 (0)333 999 9926

N+1 Singer
James Maxwell, Liz Yong, James Hopton (Corporate Finance)
Michael Taylor, Rachel Newton (Corporate Broking)
Tel: +44 (0)20 7496 3000

Stifel
Tel: +44 (0)20 7710 7600
Mark Young, Neil Winward, Tunga Chigovanyika

KTZ Communications
Tel: +44 (0)20 3178 6378
Katie Tzouliadis, Emma Pearson

 

NOTES TO EDITORS

About The PRS REIT plc
www.theprsreit.com

The PRS REIT is a closed-ended real estate investment trust established to invest in the Private Rented Sector. The Company raised £250 million gross in an initial public offering via a Placing Offer for Subscription and Intermediaries Offer. The Issue was significantly oversubscribed with demand exceeding the target fundraise amount of £250 million. The UK Government’s Homes and Communities Agency supported the launch of the PRS REIT with a direct investment of c. £25 million. The proceeds of the fundraising will be invested in completed PRS sites and PRS development sites to achieve the Company’s objective of providing shareholders with an attractive level of income together with the potential for capital and income growth.

About Sigma PRS Management Limited

Sigma PRS Management Limited is a wholly owned subsidiary of AIM quoted Sigma Capital Group plc and is the Company’s Investment Adviser. It will source investments and manage the assets of The PRS REIT plc and advise the Company on a day-to-day basis in accordance with the Company’s Investment Policy.

About Sigma Capital Group plc (“Sigma”)
www.sigmacapital.co.uk

Sigma is a private rented sector, 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. It 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. Its subsidiary, Sigma PRS Management Limited, has been appointed as Investment Adviser to The PRS REIT plc.

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