Sigma acquires another three development sites

Private rented sector residential development and urban regeneration company Sigma announced the acquisition of three private rented sector development sites in the new financial year to date on Friday.

The AIM-traded firm said the three sites, which are located in the North West and West Midlands, were expected to deliver an additional 214 new rental homes at a total gross development cost of £31.0m.

It said the acquisitions were in line with its strategy of self-funding private rented sector development sites, with the PRS REIT retaining exclusive access to acquire completed sites.

The three sites would be developed through Sigma's private rented sector delivery platform, with Countryside Properties undertaking construction.

Construction was expected to be complete in 2019.

In addition to those three newly acquired sites, Sigma also had four sites currently under construction for the PRS REIT's initial acquisition portfolio, with a gross development cost of £38.0m.

Those were expected to be acquired by the PRS REIT by the end of 2018.

A further four sites were completed and sold to the PRS REIT in 2017 for £31.7m, the Sigma board reported.

Sigma said it expected to make additional site acquisitions in 2018, with the development sites providing the group with rental income from completed homes during the delivery phase until the ultimate sale of the completed site.

“We are very pleased to be announcing our acquisition of three additional sites, which will deliver a combined 214 new rental homes in the North West and West Midlands,” said CEO Graham Barnet.

“These new homes are being delivered through our private rented sector platform, with Countryside Properties undertaking construction, and all homes are expected to be completed during 2019.”

Barnet said the completed sites were designed exclusively for the PRS REIT, with the new homes built with the needs of families foremost in mind.

“We expect to make further acquisitions in 2018 as we continue, with our partners, to drive the large scale construction of new rental homes across England.”