Major Collaboration Agreement for PRS in Scotland
25 September 2019
SIGMA CAPITAL GROUP PLC
("Sigma" or the "Company")
The private rented sector and urban regeneration specialist
Sigma Scottish PRS Fund
Major Collaboration Agreement targeting hundreds of homes across Scotland
Sigma, the private rented sector ("PRS"), residential development and urban regeneration specialist, is pleased to announce that it has agreed terms for a major new Collaboration Agreement ("Agreement") with Springfield Properties plc ("Springfield"), a leading housebuilder in Scotland. The Agreement targets the delivery of hundreds of new rental homes for Sigma, focusing on five cities in Scotland - Dundee, Edinburgh, Inverness, Perth and Stirling.
The move follows the launch of the Sigma Scottish PRS Fund ("Scottish PRS Fund"), reported on 29 April 2019, which is the first dedicated vehicle to focus on the creation of new homes for the private rental market in Scotland. As previously reported, the Scottish Government's Building Scotland Fund is supporting the Fund, which will have an initial £43m to deploy.
Under the terms of the Agreement, Springfield will construct family homes for Sigma's PRS property platform, with the majority of new homes to be built in Springfield's 'Village' developments. The homes will be built under fixed-cost design & build contracts, and hundreds of new home starts are being targeted over the coming years. The homes will be built on mixed-tenure sites, a model that Sigma already deploys across its existing sites in England.
Graham Barnet, Chief Executive of Sigma, said:
"We are delighted to announce this major partnership with Springfield, one of Scotland's leading housebuilders. It targets the construction of hundreds of new homes for families across Dundee, Edinburgh, Inverness, Perth and Stirling, which include the key locations of Springfield's Village sites. Once built our homes will be let under Sigma's 'Simple Life' lettings brand.
"Springfield has a well-established reputation for delivering quality homes in Scotland and this partnership brings significant benefits for both sides, especially in accelerating the rate at which mixed tenure sites can be developed. We look forward to working with Springfield as we develop the partnership and extend our model in Scotland."
Innes Smith, Chief Executive Officer of Springfield Properties plc, said:
"We are proud to be chosen by Sigma as their first partner in Scotland to deliver homes for the private rented sector. Like Springfield, Sigma focuses on providing the high-quality family homes that are the heart of successful communities. This agreement stands to accelerate our delivery of homes, particularly on Village developments, and we expect it to provide a further revenue stream, alongside our existing private and affordable housing activity, with good visibility over cash flows. It will also increase the number of homes available in the private rented sector and contribute towards our goal of ensuring that everyone within Scotland has a great place to live."
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.
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