Expanded PRS Portfolio Agreement with Gatehouse Bank

Sigma Capital Group plc (“Sigma” or “the Group”) Expanded PRS Portfolio Agreement with Gatehouse Bank £1bn portfolio of 10,000 new rental homes planned over five years

Sigma, the residential and urban regeneration specialist, announces the expansion of its Private Rented Sector (“PRS”) delivery with Gatehouse Bank. The new agreement augments the existing arrangement and now targets up to 10,000 new PRS homes to create a £1bn portfolio over the next five years. This reflects both the initial success of the first phase with Gatehouse, which commenced in November 2014, and the confidence of both parties in market demand.

As previously announced, the first phase is already under way, targeting 927 new homes across 14 sites in Greater Manchester and Merseyside with a total development cost of around £106m. It is currently ahead of schedule with a quarter of the units already built or under construction. Gatehouse Bank is now looking to deploy further capital into a second phase, followed by a regular rolling programme of investment to create a £1bn portfolio. Phase two discussions are well advanced, with the next sites identified.

The new arrangement allows Sigma to plan the geographic expansion of the portfolio systematically and to deliver the subsequent phases more quickly and efficiently.

This expanded PRS portfolio is being procured as before with our house building partner, Countryside Properties, and lettings management partner, Direct Lettings. A dedicated lettings brand, Difrent, has been established for the Gatehouse portfolio as we look to create one of the largest cohesive PRS portfolios focused on family homes in the UK regions over the next five years.

Graham Barnet, Chief Executive of Sigma, commented:

“We are delighted that our relationship with Gatehouse is expanding and deepening in such a significant way. Gatehouse has led the way as a funder in the PRS space and this acceleration and expansion of our activities with them is evidence of the quality and success of our initial phase and the delivery platform we have built with Countryside and Direct Lettings. We have put together a powerful team with Gatehouse and look forward to expanding on it further.”

Henry Thompson, Chief Executive of Gatehouse, commented:

“Gatehouse Bank is delighted to be extending its involvement with Sigma Capital Group plc with the additional roll out of a national development programme for providing homes in the Private Rented Sector (PRS). Following the on-going success of Phase 1 with developments in Greater Manchester and Merseyside, we are happy to extend our involvement to a bigger development programme. Sigma have proved to be one of the leading developers in the PRS space. Development of Phase 1 is well ahead of programme and everything built has been occupied. We are building communities, not just houses, and the line-up of quality tenants reflects this. With the significant housing shortage in the UK we are confident in the growing demand and deliverability of the PRS sector throughout the UK.”

Secretary of State, Greg Clark, said:

“It is encouraging that Sigma is harnessing up to £1bn of investment for the construction of 10,000 new rental homes in the UK. Underpinning the Sigma model is their work in partnership with local authorities, who have a crucial role to play in the rapid delivery of new housing.”


About Sigma Capital Group plc

Sigma is a residential development and urban regeneration specialist, with offices in Manchester, London and Edinburgh. 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. Sigma’s principal focus is now on the delivery of large scale housing schemes, initially for the Private Rented Sector (PRS).


About Gatehouse Bank plc

Gatehouse Bank plc is an investment bank based in the City of London, authorised by the Prudential Regulation Authority (PRA) and regulated by the PRA and the Financial Conduct Authority. Authorised in 2008, Gatehouse invests in accordance with Shariah principles and has divisions in Real Estate Investment, Real Estate Finance, Treasury, and Wealth Management services. Seeking to preserve and grow wealth for its clients, Gatehouse combines international financial market expertise with excellence in Shariah principles. Gatehouse advises funds with approximately $1.5 billion of assets in the United Kingdom, Europe and the United States. For more information please visit www.gatehousebank.com.

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