Sigma, the property and urban regeneration specialist, is pleased to announce that its property subsidiary, Sigma Inpartnership Ltd, has formed a second joint venture company, Countryside Sigma Ltd, with house building specialist, Countryside Properties (UK) Ltd (“Countryside Properties”). This joint venture will enable Sigma to accelerate delivery of the residential regeneration objectives of Regeneration Liverpool and thereby also improve Sigma’s returns.
Countryside Sigma will develop residential sites across the city and complements Sigma’s existing joint venture company, Neptune Inpartnership Ltd, which was established in May 2012 to develop the commercial sites Sigma is involved with in Liverpool. The residential development opportunities for Countryside Sigma will arise from Sigma’s long-term partnership with Liverpool City Council, Regeneration Liverpool (also referred to as the Liverpool Partnership). Countryside Sigma Ltd will generate value from development schemes on a project-by-project basis and will pay out this value as fees to its two joint venture partners, Sigma and Countryside Properties.
Countryside Sigma’s first project is the construction of 63 new homes in Norris Green Village, a 63 acre site located five miles from Liverpool City Centre. As announced today in a separate statement, construction work on the development is about to commence.
Graham Barnet, Chief Executive of Sigma, commented,
“I am delighted to announce this new venture with Countryside Properties. Countryside Sigma is the second joint venture company we have established to accelerate the regeneration opportunities we hold in our partnership with Liverpool City Council. It will focus on the delivery of new homes and complements our first joint venture company, Neptune Inpartnership, which is focused on commercial sites. Both joint ventures help us to deliver the Council’s regeneration objectives for Liverpool and crystallise further value for Sigma.”
About Sigma Inpartnership
Sigma Inpartnership is a wholly owned subsidiary of Sigma and operates from offices in Manchester and Birmingham. Sigma Inpartnership was established as an investment led property-related regeneration company, specialising in the creation of long term, asset-backed partnerships with the public sector.
Sigma Inpartnership has secured three partnerships, with Liverpool City Council, Solihull Metropolitan Borough Council and Salford City Council, each ranging from 10 to 20 years’ duration. The partnerships hold long term option arrangements with the respective local authorities for a mix of residential, commercial, education and health opportunities. In total, the partnerships provide for the delivery of over 10,000 new homes, a significant number of new retail centres, health/medical centres, schools and mix of retail/ leisure facilities.
The total development value of the opportunities held within the three partnerships is estimated at well over £2 billion.
About Regeneration Liverpool (also referred to as the Liverpool Partnership LLP)
Regeneration Liverpool is a limited liability partnership, legally constituted as the Liverpool Partnership LLP and formed in March 2007 with Liverpool City Council. It has been established to re-develop any surplus land assets at the discretion of the Council.
Land in the Partnership can be developed using any combination of the following three scenarios: by the Liverpool Partnership – Sigma Inpartnership earns a management fee and participates in a profit share; by Sigma Inpartnership or an affiliate of Sigma Inpartnership – Sigma Inpartnership earns a fee and an agreed priority profit; or by the Liverpool Partnership selling a site on the open market – Sigma Inpartnership earns a percentage of the sales price achieved. At least 20% of the land must be disposed of by sale on the open market.
About Countryside Properties (UK) Ltd
Founded in 1958, Countryside Properties is a developer of new homes and communities, covering estate regeneration, private and affordable housing and the creation of sustainable communities, including commercial property and mixed-use development. Countryside Properties also specialises in design and build contracting. Countryside Properties has a £5.1 billion nationwide development programme and has a strong track record of delivery in London and the Thames Gateway, the South East, East and North West of England.
Countryside Properties operates from its Head Office in Brentwood and its North West office in Warrington. Since 2000, it has received more than 140 awards for design excellence.