Completion of North Arran Way Development in North Solihull
and Transfer of Remaining Fund Management Contracts
Sigma, the residential and urban regeneration specialist, is pleased to announce that construction of Smiths Wood village centre development at North Arran Way, in North Solihull, where Sigma was acting as developer, is now complete and that ownership of the development has been transferred to the buyer. As a result, the sale proceeds have been received and, after payment of an associated loan from the Government’s Growing Places Fund and amounts due to the contractor, Sigma expects the net funds to be retained by the Group will be in excess of £500,000, as previously reported.
The North Arran Way property development helps to fulfil Solihull Metropolitan Borough Council’s regeneration plans for a c.1,000 acre area in North Solihull. The new scheme comprises a 30,000 sq ft, two storey commercial development, with 16,000 sq ft of office accommodation and eight retail units. For this development, Sigma was responsible for obtaining planning permission and securing five key pre-lettings which generate 90% of the total income for the development, and securing the forward sale of the development. In addition, Sigma procured the construction contract and finance for the build phase of the development, negotiating a £4 million funding facility from the Government’s Growing Places Fund.
As previously reported, Sigma is also providing development management services on a further village centre in North Solihull where new infrastructure is being delivered, and is assessing the viability of further commercial development opportunities.
Sigma is also pleased to report that it has now fully exited its historic venture capital activities, with the transfer of the management of the fourth and last of the Group’s venture capital funds to Shackleton Finance Limited together with the business advisory contracts of certain of the investee companies. The transfer of the management of Sigma’s two university funds to a third party fund administrator has also been completed. Sigma continues to be a limited partner in all four venture funds and so retains its investment in those funds. As a result of these transfers, Sigma no longer has any funds under management.
Graham Barnet, Chief Executive of Sigma, commented,
“The North Arran Way development in North Solihull has proceeded to plan and we are delighted that the partnership with the Solihull Metropolitan Borough Council continues to deliver the Council’s large scale regeneration objectives for the area. Work on further regeneration schemes for the region continues.”