First tenants move into first new homes completed and rented under Private Rented Sector joint venture with Gatehouse Bank £100m development of 927 new PRS homes
Sigma, the residential and urban regeneration specialist, is pleased to announce that the first tenants are moving into the first completed new homes under its Private Rented Sector (“PRS”) joint venture with Gatehouse Bank plc (“Gatehouse), which commenced activity in November 2014. These initial units are part of a £100m development of 927 new homes under the joint venture, with additional developments expected, to create one of the first large scale PRS platforms in the UK.
The new family homes, a mix of high quality 2, 3 and 4 bedroom houses are in Norris Green, Liverpool and Lower Broughton, Salford. As well as the first tenants moving in, ongoing rental demand is strong and the majority of properties scheduled for release over the coming months have already been pre-let or reserved. Direct Lettings Ltd (part of the Shepherd Direct Group), with whom Sigma has a well-established association, is managing the lettings on behalf of Sigma. Together with Gatehouse and Direct Lettings Ltd, Sigma is also launching a dedicated letting brand, ‘DifRent’. The new brand will support the Sigma/Gatehouse PRS platform and will be used for the rental of all units.
As previously reported, this PRS portfolio will be built across 14 sites in the North West, on land procured and developed by Sigma through its existing local authority partnerships with Liverpool City Council and Salford City Council, and its housebuilding partner, Countryside Properties (UK) Ltd. Construction is currently underway on a total of six of the 14 sites, with the development of the remaining sites scheduled to begin by early June 2015. Councillors from both Liverpool City Council and Salford City Council are supporting the launch the first PRS homes.
Under the terms of the joint venture, Sigma earns an initial upfront fee on commencement of construction and thereafter a development management fee, paid quarterly over the duration of the delivery period. On completion, Sigma will earn a quarterly asset management fee, with all fees based on the development cost. Sigma will also retain a share of the net disposal profits on the assets, subject to a minimum return to investors.
Councillor Ann O’Byrne, Assistant Mayor and Liverpool City Council Cabinet Member for Housing, said:
“The PRS scheme is helping in the transformation of Norris Green and it has been brought about with the very constructive relationship the City Council has with Sigma.”
Graham Barnet, Chief Executive of Sigma, commented:
“We are delighted to be announcing that the first tenants are moving into the first completed homes under our PRS joint venture with Gatehouse Bank. Our venture has the potential to create one of the first and largest new build PRS platforms in the UK, and today’s announcement marks another significant step towards achieving this goal. We are delivering high quality new rental homes ahead of time and on budget, and look forward to the completion of the initial portfolio of 927 homes over the next eighteen months.”
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 (the “Bank”) 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. Founded in 2008, the Bank invests in accordance with Shariah principles with divisions in Real Estate Investment, Real Estate Finance, Treasury, Wealth Management, and Shariah Advisory. Seeking to preserve and grow wealth for its clients, the Bank is built on combining international financial market expertise with excellence in Shariah principles. The Bank advises funds with approximately $2 billion assets in the United States and United Kingdom.