The vehicle set up to invest in new-build private rented sector housing has acquired six further sites, three of them in the North West, as it issued a positive trading update for its third financial quarter.
Manchester-based PRS REIT now has 49 development sites under construction, and has completed 944 units. It said that as of 31 March 2019, completed and contracted development totalled approximately £603m in gross development cost, equating to 3,951 homes with an estimated rental value of approximately £37.3m per year when fully completed.
Of the six newly acquired sites, two will be developed by PRS REIT’s investment adviser Sigma PRS Management, which is a wholly owned subsidiary of Sigma Capital Group. When completed, the homes are expected to provide rental income of £4.2m per year. Construction on four of these sites is live, with completed housing already in place on one site.
Sigma PRS said that it has now identified sites that will fully utilise the company’s expected gross funds of £900m, including debt, and is continuing to assess further development opportunities.
PRS REIT was set up in 2017 and raised £250m at IPO, doubling this in a second fundraising in early 2018, before announcing a major debt facility. The business model includes buying both development sites and those recently built or under construction.