Sigma, the private rented sector specialist, is pleased to announce the acquisition of a further three sites, in the West Midlands and North West, to deliver an additional c. 200 new rental homes for its self-funded PRS portfolio. The total gross development cost of the new homes, including land acquisition, is c. £27m.
These sites take the total number of Sigma’s self-funded developments to seven and extend Sigma’s self-funded portfolio into the Midlands region. Once the homes have been completed, Sigma’s own PRS portfolio will stand at approximately 420 units, located across Birmingham, Greater Manchester, Liverpool, Sheffield and Shropshire.
The delivery of these sites is being facilitated by the funding agreed with the Homes and Communities Agency (“HCA”). Sigma expects to acquire further sites, deploying the HCA facility, to create a self-funded portfolio with a total gross development cost in excess of £60m.
The three new sites are located in Mafeking Road, Birmingham, Howe Bridge Mill, near Atherton in Lancashire, and Hinkshay Road, Telford and will comprise a mix of two, three and four bedroom, high quality rental family homes. Construction is being undertaken by Sigma’s partner, Countryside Properties PLC and the first homes are expected to be available to rent in early autumn 2017. These PRS homes are also helping to support the delivery of market-for-sale and affordable homes across these sites.
Sir Edward Lister, Chairman of HCA, commented:
“Our £45 million loan from the Home Building Fund will mean that working with Sigma Capital we will help thousands of families in the North and Midlands move into a new, high-quality rented home. Sigma Capital has already delivered its first homes and more than 370 more homes are to follow over the next 12 months.”
Graham Barnet, CEO of Sigma, commented:
“We are pleased to announce the acquisition of a further three sites as we move towards our target of creating a self-funded portfolio with a total gross development cost of over £60m. We will be using our funding facility with the HCA to deliver approximately 200 new rental homes across these sites, which are located in Birmingham, Telford and Atherton. These new rental homes are also helping to unlock the delivery of a wider development scheme which includes new market-for-sale and affordable homes.
“We are delighted to be helping to deliver the HCA and Government’s objective of making more homes available across England. Our PRS platform facilitates the faster delivery of new homes and, with our partners, we are executing across multiple geographic regions. We will be acquiring further sites with HCA funding.”