Acquisition of PRS Sites

31 January 2019

The PRS REIT plc

(the "Company" or "PRS REIT")

Acquisition of PRS Sites

The PRS REIT, the closed-ended real estate investment trust established to invest in new-build homes for the Private Rented Sector ("PRS"), is pleased to announce that it has signed contracts over four additional PRS sites in January.  Three of the sites are development sites and the remaining site will be acquired once fully-completed. The four sites are expected to deliver approximately 310 new family homes and yield £3.7m per annum in rental income once developed and let. The gross development cost ("GDC") of these sites is approximately £62m.  

The total number of sites either completed or contracted* now stands at 47, approximating to 3,882 new homes, once these sites are fully developed. The total GDC of these 47 sites is approximately £591m, and the total rental income is forecast to be £36.7m per annum once completed and let.

In a separate announcement issued today, the Company has declared an interim quarterly dividend of 1p per share (relating to the quarter to 31 December 2018) and reports that its interim results for the period to 31 December 2018 are expected to be published on 12 March 2019, at which point a further update on trading will be provided.

Development sites

Of the three development sites under contract, one has been acquired and construction is underway. This site is in Salford, Greater Manchester. The other two sites are under contract to be acquired once planning approval processes are completed, which is expected during the first half of 2019. These sites are in Chester and Houghton Regis in Bedfordshire. 

The three sites have a combined GDC of about £51.5m and are expected to deliver approximately 272 additional new homes and provide an estimated rental income of £3.1m per annum.  The development will be managed by the Investment Adviser, Sigma PRS Management Limited. 

Completed site

The fourth site has been bought under a forward contract with the Investment Adviser and will be acquired once it has been completed and fully let.  This is anticipated to be in the first quarter of the calendar year 2020. The site is in Bury St Edmunds and will comprise 38 new homes, with an expected rental income of £0.6m per annum.

DEFINITIONS

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NOTES TO EDITORS

About The PRS REIT plc
(www.theprsreit.com)

The PRS REIT is a closed-ended real estate investment trust established to invest in the Private Rented Sector and to provide shareholders with an attractive level of income together with the potential for capital and income growth.  It has raised a total of £500m (gross) through its Initial Public Offering, on 31 May 2017, and a subsequent placing in February 2018. Both fundraisings were supported by the UK Government's Homes England with direct investments.  

LEI: 21380037Q91HU97WZX58

About Sigma Capital Group plc
(www.sigmacapital.co.uk)

Sigma Capital Group plc is a private rented sector, residential development, and urban regeneration specialist, with offices in Edinburgh, Manchester and London. Sigma's principal focus is on the delivery of large scale housing schemes for the private rented sector. It has a well-established track record in assisting with property-related regeneration projects in the public sector, acting as a bridge between the public and private sectors.  Its subsidiary, Sigma PRS Management Limited, is Investment Adviser to The PRS REIT plc.

About Sigma PRS Management Limited

Sigma PRS Management Limited is a wholly-owned subsidiary of AIM-quoted Sigma Capital Group plc and is Investment Adviser to The PRS REIT plc. It sources investments and manages the assets of The PRS REIT plc and advises the Alternative Investment Fund Manager ("AIFM") and The PRS REIT plc on a day-to-day basis in accordance with The PRS REIT plc's Investment Policy. The Investment Adviser is an appointed representative (reference number: 776293) of the AIFM.