Sigma is the architect of The PRS REIT plc, the first quoted Real Estate Investment Trust (“REIT”) to focus purely on the private rented sector (“PRS”). The PRS REIT plc, which is listed on the Specialist Fund Segment of Main Market of the London Stock Exchange plc, aims to provide investors with an attractive level of income, and income and capital growth, through investment in a portfolio of newly-constructed, residential PRS sites of multiple units. These units will comprise mainly family homes and will be located across sites in cities and towns in England.
The PRS REIT plc has raised initial equity of £250m (gross) and is supported by the UK Government’s Homes and Communities Agency (“HCA”) which has directly invested c. £25m. The PRS REIT is targeting a stabilised dividend yield of 6 per cent. or more per annum and net total shareholder returns of 10 per cent. or more per annum post stabilisation*. The target dividend yield in the period to 30 June 2018 is 5 per cent*
Sigma’s subsidiary, Sigma PRS Management Limited, will act as Investment Advisor to the REIT. Properties will be delivered through Sigma’s PRS platform, with the support of its partners Countryside Properties plc, Keepmoat Limited, Keepmoat Regeneration, SDL, and the Homes and Communities Agency (“HCA”).
The PRS REIT will acquire an initial seed portfolio of 496 units (estimated to be £72m) currently being developed by Sigma. These will be delivered through Sigma’s Construction Framework Agreements with its partners under the Simple Life brand.
* This is a target only and not a profit forecast. There can be no assurance that the target can or will be met and should not be taken as an indication of the Company’s expected or actual future results