Closed-ended real estate investment trust PRS REIT, which was established to invest in new-build homes in the private rented sector, has acquired a development site for the construction of 145 houses in Wigan, with a gross development cost of £15.2m.
The development site is expected to generate £950,000 rental income per year once fully let
Construction on the site is expected to be completed in the first half of 2020. Sigma PRS Management, the PRS REIT’s investment advisor, sourced the investment and will manage the delivery of the homes, with Countryside Properties as the construction partner.
Following deals announced this week, the PRS REIT has 30 sites either completed or under construction, equating to 2,130 family homes. The gross development cost of these sites is around £331m, it said, and the homes have a combined ERV of £20.5m per year.
The company expects to publish its audited results for its maiden financial period, covering the 13 months to 30 June 2018, in October, and will provide its first quarterly update for the current financial year at the same time.
In June, PRS REIT bought a completed scheme and three development sites in Greater Manchester and Merseyside for a combined £43.5m.
The three development sites include two sites on Carr Lane, Prescot and on Earle Street in Newton-le-Willows, which include a total of 238 new homes. These will be managed by Sigma PRS Management and delivered by Countryside, and are expected to generate rental value of £2.2m per year. These three sites have a combined gross development value of £34.4m.
The completed scheme it acquired is at Howe Bridge Mill in Atherton, acquired from Sigma Capital.