Avant Homes has completed the sale of 306 new homes across eight developments to leading single family housing provider in the UK, Sigma Capital Group, for over £59.5m. The homes are set to be taken to market under Sigma’s private rental brand, Simple Life.
The housebuilder’s major sale into the private rented sector (PRS) forms an important part of the company’s growth strategy to better serve customers and communities.
This involves Avant Homes constructing and selling its houses on a multi-tenure basis, whilst working closely with local authorities to deliver homes which are affordable and meet a range of housing needs.
Four of the developments are in north east England, two in Yorkshire with the balance in the East Midlands. Under the terms of the deal, Avant Homes will hand over completed homes to Sigma on each of the developments.
Commenting on the deal, Avant Homes Group special projects director, Timothy Pegg, said: “At a time where affordability is stretched, we are very pleased to be playing our part in providing energy efficient, quality new homes at price points and tenures customers can afford.
“Our developments are in popular locations and we are delighted to be partnering Sigma in supporting communities across many of our regions.
“It is testimony to our ambition that we have been able to secure this large, multi-site deal with a PRS provider of the stature of Sigma Capital Group.
“We look forward to further developing our relationship with them, as well as creating new ones with other PRS providers throughout the UK as we evolve our multi-tenure growth strategy further.”
Commenting on the deal, Sigma Capital Group land director, Graeme Reay, said: “We’re delighted to embark on this latest venture with new, trusted partners Avant Homes to help support the local and wider communities. We’re looking forward to offering renters across these regions with a high quality, professional approach to renting, bettering their housing options and considerably contributing to the housing market demands.”
Avant Homes was advised on the sale by a team at real estate consultancy Colliers led by head of residential capital markets, Mike Gorman.
He commented: “It’s great to see that Sigma recognise the opportunity that Avant had to offer, investing in new rental properties to meet the ever-present housing need.
“By diversifying its portfolio into the single family housing market, Avant Homes understands that no matter the economic challenges, there’s always a demand for new, quality housing which needs to be met.”
Avant Homes builds house types which are ideal for the private, rented and affordable sectors. The housebuilder operates across the Midlands, north of England and Scotland from nine regional operating businesses.
At present, Avant Homes employs more than 600 people. The housebuilder’s ambition to grow its multi-tenure business further across its existing regions and beyond, delivering much needed new homes and providing employment opportunities for many.