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, aims to provide investors with an attractive level of 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 the key cities and towns in England.
The PRS REIT plc raised initial equity of £250m (gross) and is supported by the UK Government’s Homes England (formerly HCA) which directly invested c. £25m. In February 2018, a successful offer for placing raised a further £250m of equity. The 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 Ltd, 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, Engie, and Homes England.
Seeded with an initial portfolio of 496 units (c.£72m) developed by Sigma. The PRS REIT plc is expected to commence over 3000 properties across 36 sites within its first year.
*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.