Sigma secures £268m from Morgan Stanley
Refinancing part of its 4,500-home portfolio, the private sector rental leader has agreed a debt facility with the global investment banking giant.
Mike McGill, group finance director of Sigma Capital Group, said that the debt facility agreement supported “Sigma’s ongoing growth as a leading provider of BTR single-family homes for institutional landlords in the UK”.
He continued: “We have delivered some of the largest portfolios of new rental homes in the UK and are in the process of completing more, which takes our current delivery to around 13,500 new rental homes.”
Sigma Capital Group’s pipeline spans the country and represents a cumulative construction cost of £3bn.
Sigma’s emphasis is on single-family rental, although it also delivers multi-family apartment projects. Utilising its Simple Life brand, Sigma markets, lets, and manages rental homes. Simple Life’s portfolio of properties has a value of £400m and includes more than 3,000 residences.
The 1,400 homes that made up the refinancing agreement with Morgan Stanley are newly completed properties from 18 different sites outside of London. Simple Life manages all of them.
Mike Scott, group legal counsel for Sigma, praised working with Morgan Stanley.
“The team brought a pragmatic, solutions-driven mindset and was consistently commercial throughout,” Scott said.
“Their collaborative approach meant that the facility was delivered on time and within budget, and we look forward to building on this new relationship as Sigma continues to scale.”
Laurus Property Partners supported Sigma on the deal.
Founded in 2014, Sigma has offices in Manchester, Edinburgh, and London.
In its latest published annual report on Companies House, which is for the year ended 31 December 2024, Sigma reported a profit before tax of £42m – up from £800,000 the year before. This was due to an increase in the number of investment properties (which alone led to Sigma’s net assets jumping from £277m in value in 2023 to £439.6m in 2024) as well as bolstered rental income.
In the North West, Sigma has partnered with Great Places Housing Group, Kellen Homes, and Peel Land to deliver the £155m Mosley Common masterplan. Sigma has also worked with Vistry to acquire 120 homes in St Helens this year. This past spring, Sigma celebrated the completion of 99 homes in Middleton.
