Sigma fund fully committed

The Manchester-based residential investment vehicle PRS REIT has fully committed the £250m raised in its May 2017 float ahead of schedule.

In a quarterly update issued this morning, PRS REIT said that 1,720 rental homes in the North West, Midlands and Yorkshire will be delivered under this initial development portfolio, with total estimated rental value of £15.7m per year. To date, 264 homes have been completed and let.

Over the last quarter of 2017, the REIT acquired, commenced or secured 10 sites for a total cost of £11.2m, adding to the six sites it already had under construction. Sites in Rochdale, Oldham, Salford, Kirkby, Winsford and Atherton are included in the portfolio.

Sigma PRS Management said that the £200m of debt it is looking to raise will be used to deliver an additional 1,380 new rental homes, on sites already identified. Furthermore, Sigma added that it has identified in excess of £450m of development opportunities in addition to those sites, reflecting its broadening relationships – partners the business works with on a design and build basis include Countryside Properties and Keepmoat..

PRS REIT chairman Steve Smith said: “We are pleased to report that The PRS REIT continues to make strong progress.

“We are focused on creating portfolios of high quality homes, mainly catering for middle-income families, and are targeting sites near good schools. There is a dearth of rental housing for families, particularly professionally managed properties, and we are seeing strong demand.

“Growth prospects remain very positive, with additional significant funding and development opportunities opening up. We look forward to publishing a further announcement regarding the Company’s mid-year NAV and maiden dividend at the end of January.”

A further announcement confirming the company’s net asset value as at 31 December 2017 and declaring its maiden dividend will be published at the end of January.

Sigma itself will report its full year results in April, and expects to announce a profit of £4m. It said that its relationship with the Homes & Communities Agency remains highly productive, generating development opportunities for Sigma and its partners.

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