Expansion into London
SIGMA CAPITAL GROUP PLC
("Sigma" or the "Company")
The private rented sector and urban regeneration specialist
Launch of PRS Activities and 'Simple Life' Rental Brand in London
Sigma, the private rented sector ("PRS"), residential development and urban regeneration specialist, is pleased to announce the expansion of its build-to-rent activities and 'Simple Life' rental brand into London, with the acquisition of two development sites in Havering and Barking. This first venture is expected to mark the start of greater activity over the coming year.
The Company has acquired an 80-unit development site at Beam Park, part of a £1 billion regeneration project underway across the London Boroughs of Havering and Barking & Dagenham, on land released by the Greater London Authority ("GLA") as part of the GLA's plans for new London homes. Sigma has also acquired a 77-unit development site at Fresh Wharf, a major riverside scheme close to Barking Town centre.
Sigma is working with Countryside Properties and L&Q New Homes at the Beam Park scheme and with Countryside Properties and Notting Hill Developments at Fresh Wharf.
The combined total gross development cost ("GDC") of the two sites is c. £43.8m. The Fresh Wharf site is expected to be completed towards the end of next year, with Beam Park completing by Spring 2021. The new homes will be marketed and let under the Company's 'Simple Life' letting brand, which aims to set a new, higher standard of customer care in the general rental market.
The Company's move into London follows its recent launch in Scotland, where it has entered into a collaboration agreement with Springfield Properties plc, a leading Scottish housebuilder, that is targeting the delivery of hundreds of new rental homes across Scotland's major cities, including Dundee, Edinburgh, and Glasgow. Outside London, Sigma has delivered more than 3,000 new rental homes across the regions, through its PRS property platform, with over 1,300 delivered for The PRS REIT plc ("PRS REIT"), which is establishing a large-scale portfolio of family homes. A further 3,400 homes are currently under construction for the PRS REIT, as Sigma progresses towards delivering the PRS REIT's overall initial target of 5,400 homes across the UK (outside London).
Graham Barnet, CEO of Sigma Capital Group, commented:
"We are delighted to announce the expansion of Sigma's build-to-rent activities into London, with the acquisition of our first two sites at Fresh Wharf in Barking and Beam Park in Dagenham. This is an exciting first step for the Company into a new key geography. The move into London means that Sigma's property delivery platform now reaches across most of the mainland UK, providing us with significantly increased development opportunities. It also takes our letting brand, Simple Life, into the London market.
"Our long-term partner, Countryside, will develop both London sites with Fresh Wharf development completing by the end of next year and Beam Park in Spring 2021."
Ian Sutcliffe, Group Chief Executive at Countryside Properties plc, commented:
"We are delighted to be extending our very successful partnership with Sigma Capital into the London market. We have delivered over 4,000 private rented homes over the past five years together as part of differentiated mixed tenure approach to regeneration sites. We anticipate continuing growth from our relationship with Sigma in London and beyond."
Kevin Harris, Director of Project Management and Development at L&Q, commented:
"We are happy to welcome Sigma to the Beam Park regeneration. This project is truly exciting, and will deliver real benefits to the local area, from community facilities to generous publicly accessible open spaces. By working together to provide homes in a range of tenures - from private rented and outright sale to much needed affordable housing, we can make an important contribution to meeting London's housing needs."
Sigma Capital Group plc
Graham Barnet, Chief Executive
T: 020 3178 6378 (today)
Malcolm Briselden, Finance Director
T: 0333 999 9926
Katie Tzouliadis, Dan Mahoney
T: 020 3178 6378
James Maxwell, James Moat, Ben Farrow
T: 020 7496 3000
NOTES TO EDITORS
About Sigma Capital Group plc
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, which launched in May 2017 to invest in new-build family rental homes in the UK.
In April 2019, Sigma launched the Sigma Scottish PRS Fund, the first dedicated vehicle to focus on the creation of new rental homes for families in the private rented sector in Scotland. Sigma Scottish PRS Fund will have initial resources of £43m, £30m of which will be provided by the Building Scotland Fund in the form of a revolving credit facility and the remainder provided by Sigma.
About Fresh Wharf
Fresh Wharf is a major redevelopment project by Countryside Properties and Notting Hill Developments, which will build 911 new homes on a former brownfield riverside site less than one mile from Barking Town Centre. The homes will comprise a mix of contemporary one and two bedroom apartments, and the development will also deliver new retail spaces and public areas to transform the area.
About Beam Park
The development at Beam Park is developed by Countryside Properties and L&Q New Homes, and will create a new community of 3,000 new homes on a derelict former Ford Factory site in the London Boroughs of Barking & Dagenham and Havering. The homes will be a mix of one and two bedroom apartments and four bedroom homes. The development will also deliver a new railway station, a medical centre, two schools, a nursery, a gym and community facilities.
About Countryside Properties plc
Countryside is a leading UK home builder and regeneration partner specialising in place making and urban regeneration. Its business is centred around two complementary divisions, Partnerships and Housebuilding. The Partnerships division specialises in urban regeneration of public sector land, delivering private and affordable homes by partnering with local authorities and housing associations. The Housebuilding division, operating under Countryside and Millgate brands, develops sites that provide private and affordable housing, on land owned or controlled by the Group. Countryside was founded in 1958. It operates in locations across London, the South East, the North West of England, the Midlands and Yorkshire.
About The PRS REIT plc
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.
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