Sigma, the property and urban regeneration specialist, is pleased to report that the fees relating to the Top Streets residential development in Higher Broughton, Salford (announced in the Group’s half year report issued on 28 September 2012) have now been triggered, following the sale of the site to the developer, Countryside Properties. The six acre Top Streets development is part of Sigma’s Salford Partnership (also referred to as the Higher Broughton Partnership), a long term exclusive partnership with Salford City Council and RBS, which is regenerating land in the Higher Broughton area of the city.
The Top Streets project will provide the Group with fees and a share in the value of the housing units currently estimated at £0.70 million in total, as previously announced. Of this £0.70 million, base fees of £0.35 million are payable over the next two years as the houses are sold, including £0.25 million in cash in the next 12 months. The balance of £0.35 million will accrue in the form of cash or shared equity. Some of the housing units will be sold via a shared equity arrangement, with value realised either when the houses are sold by the initial purchaser or on the tenth anniversary of the purchase of the property.
As previously reported, in total, in the next 15 months, Sigma expects its Salford Partnership activities to generate c. £0.6 million of revenue. This includes fees from the major Newbury Place healthcare and retail scheme, which also completed this month and for which Sigma received £0.3m.
The Top Streets site, now renamed Kings Square, will yield 80 housing units, comprising a range of three, four and six bedroom properties including 23 homes which will be funded and managed by a locally represented housing association. As a partner of the Salford Partnership, Sigma has already been involved with the delivery of approximately 250 new homes in Higher Broughton as well as a new community hub, new sports facilities and two school refurbishments. Sigma is currently working up appraisals on another development site, Hanover Court in Higher Broughton.
Graham Barnet, Chief Executive of Sigma, commented,
“In April, we announced that we had obtained planning permission for the construction of 80 new homes in Higher Broughton in Salford, and now the sale of the six acre site to Countryside Properties, who will start construction of the new homes, triggers the fees that are due to Sigma as a partner of the Salford Partnership. We will also share in the value of the housing units as they are sold to buyers.
The construction of these new homes will represent further delivery on Salford City Council’s regeneration objectives for the Higher Broughton area, and we are working with the Council to expand the scale of the regeneration opportunity within the Salford Partnership, with the Council injecting further assets for us to develop.”