Private rented sector specialist Sigma Capital has seen a major increase in pre-tax profit following the successful launch of its PRS REIT last year.
In its half-year results, released today, Sigma reported a pre-tax profit of £4.2m for the six months to 30 June 2018, up from £1m for the same period a year earlier.
Sigma now has nearly 1,800 homes under construction which will be delivered to the PRS REIT; these have a gross development value of £280.2m. It also has a development pipeline of around £600m.
The company is planning to deliver 6,000 homes across the country in the next three years, alongside its partner Countryside Homes. It has also been active in site acquisitions, having purchased a series of sites this year, including four sites across Greater Manchester and Merseyside in a £43.5m deal this year.
Projects Sigma and Countryside are working on include a 140-home development in Prescot as part of the wider regeneration of the Prysmian Cables site; and at Tower Hill in Kirkby, where Countryside will deliver 87 of its planned 158 homes as private-rented accommodation for Sigma.
Graham Barnet, chief executive of Sigma said: “We believe that Sigma is well-placed for continuing growth, and expect profitability in the second half to overtake the first half, with 2019 showing even greater value creation over 2018.
“Demand for family housing for rent remains very strong against a background of structural undersupply and growing need. We are pleased to play our part in helping to meet this shortfall, and look forward to delivering the PRS REIT’s target of thousands of high-quality new homes across the major regions of England.”