MULTIFAMILY BTR housing

Multifamily BTR housing is a very important part of Sigma’s urban housing delivery and of the regeneration of many city and town centres across the UK. Across the regions this product sits alongside our single family offering, with the same levels of build quality, attractiveness of location and professional customer service, all managed under our Simple Life brand.

CIRCA

2,800

multifamily apartments
completed and contracted

CIRCA

£48m

ERV

CIRCA

£710m

GDC

Multifamily pipeline homes

4,000+

Stats based on assets currently under management
Two couples dining

In 2020, Sigma launched its first 100% purpose built multifamily fund with EQT Exeter, a World Top 10 Private Equiry firm, focussed on multifamily assets in London Zone 4 – M25 and commuter towns. Sigma’s multifamily offering consists of purpose built new build apartments, typically ranging from 80 to 400 units per phase.

Apartment block
Apartment block

Benefits of Multifamily Investment?

  • Supply is in demand following 425,000 BTL landlords selling out since 2016 (CBRE). For that reason, the rental market is suffering from a severe supply shortage
  • Increased mortgage costs coupled with tax policies have driven individual landlords to exit the market, creating opportunity to take a market share. This has equally resulted in people renting for longer
  • Acute shortfall in supply – Annual new build completions have consistently been below the Government target; currently the UK has a 4.3m backlog of homes
  • Significant population growth fuelling housing demand nationally, notably in metropolitan areas; growth is expected to continue with an additional 2.1m households forming by 2040
  • With less than 1% of the total UK’s 9 trillion pound housing market owned by institutions, there is a huge growth opportunity for BTR providers to unlock the ability to deliver at pace and scale
  • Falling planning permissions – There has been a stark decline in residential development decisions awarded in the last c.6 years, meaning that the current demand / supply dynamic is unlikely to change meaningfully in the short to mid-term

Sigma’s Multifamily PLATFORM:

  • Experienced and proven management team with demonstrated industry leading track record in multifamily
  • Selected growth market locations where rents can be set at levels which are attainable for the majority of the working population resulting in a very tight and predictable Gross to Net leakage, providing investors with a heavily risk mitigated model and strong investment returns
  • Delivering good quality amenity lite housing, which allows for an attainable rent, low cost and predictable management
  • End-to-end multifamily platform with scale, positioned for stability and value chain efficiencies
  • Sigma’s specification and construction requirements aim to future-proof the assets to ensure investment longevity and success (EPC rating, fire safety, ventilation and sprinkler systems)
  • Differentiated underwriting leading to best-in-class returns throughout cycle
  • Strong, established relationships and streamlined working process with local authorities, housebuilders, Central Government, and many others, providing ability to consistently source and acquire assets at an attractive discount
  • Forward funding model implemented via fixed price contracts removing cost-overrun risk

Multifamily Case Study Brochure

Sigma Capital Group: Multifamily Housing
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