Sigma, the finance, property and urban regeneration specialist, is pleased to announce that its subsidiary, Sigma InPartnership Ltd, has agreed contract terms for the delivery of the next phase of new homes with the Higher Broughton Partnership (a limited partnership between Sigma InPartnership, Salford City Council and Royal Bank of Scotland).
The next phase comprises the construction of 80 new homes in Higher Broughton and the agreement provides for a base fee over the next three years of £350,000 in addition to a share of the value of the housing units, realisable in cash as the units are sold or as equity in the units. The current estimated share of profit due to Sigma is an additional £150,000, dependent on property market conditions. The development will commence in the summer with sales expected through 2013 and 2014.
On 10 November 2011, Sigma reported on the progress the Higher Broughton Partnership was making, including Sigma InPartnership’s work on a detailed planning application for the 80 new homes. Sigma can confirm today that detailed planning consent has now been granted by Salford City Council and that consequently housing developer, Countryside Properties Limited (appointed as preferred partner in November), is proceeding with the purchase and construction of the site, with on-site work anticipated to start late summer.
A detailed planning application for a major new health care and retail scheme at Newbury Place, Higher Broughton (referred to in the 10 November 2011 statement) has now also been submitted. As previously reported, the scheme is worth around £9 million and encompasses a 30,000 square foot development including a GP surgery, a dental practice, pharmacy, optician and a new convenience store, pre-let to Tesco. Detailed planning consent for the Newbury Place scheme will trigger the completion of the Development Contract agreed with a specialist medical facility developer and consequently additional significant income to the Higher Broughton Partnership, with Sigma Inpartnership participating in a share of that in the form of fees and profit. News on planning consent is expected in May.
Sigma InPartnership via the Higher Broughton Partnership has to date successfully delivered approximately £45m of new homes in the area across three phases, a new community facility, new sports facilities and the refurbishment of two local schools in Higher Broughton.
Commenting, Graham Barnet, Chief Executive of Sigma, said,
“Sigma has an instrumental role is assisting in the regeneration of Higher Broughton in Salford via the unique partnership that has been formed between Salford City Council, Royal Bank of Scotland and Sigma InPartnership.
This partnership, the Higher Broughton Partnership, has made considerable progress over the last six months in moving forward with the regeneration scheme. The grant of detailed planning consent for 80 new homes represents further progress and we expect to hear news of our submission for the development of a major new health care and retail centre at Newbury Place in May, which will unlock further value for the Partnership.”