Sigma expands build-to-rent activities into London
Private rented sector residential developer and urban regeneration specialist Sigma Capital Group announced the expansion of its build-to-rent activities and 'Simple Life' rental brand into London on Tuesday, with the acquisition of two development sites in Havering and Barking.
The AIM-traded firm said the first venture was expected to mark the start of greater activity over the coming year.
It said it had acquired an 80-unit development site at Beam Park, part of a £1bn regeneration project underway across the London boroughs of Havering and Barking and Dagenham, on land released by the Greater London Authority as part of its plans for new London homes.
Sigma said it had also acquired a 77-unit development site at Fresh Wharf, a major riverside scheme close to Barking town centre.
It said it was 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 of the two sites was said to be around £43.8m.
Sigma said the Fresh Wharf site was expected to be completed towards the end of next year, with Beam Park being finished by spring 2021.
The new homes would be marketed and let under the company's 'Simple Life' letting brand, which the board said aimed to set a “new, higher standard” of customer care in the general rental market.
Sigma said its move into London followed its recent launch in Scotland, where it entered into a collaboration agreement with Scottish housebuilder Springfield Properties, targeting the delivery of hundreds of new rental homes across the country’s major cities, including Dundee, Edinburgh, and Glasgow.
Outside London, Sigma had delivered more than 3,000 new rental homes across the regions through its private rented sector property platform, with more than 1,300 delivered for the PRS REIT, which was establishing a large-scale portfolio of family homes.
A further 3,400 homes were currently under construction for the PRS REIT, as Sigma said it was progressing towards delivering the REIT's overall initial target of 5,400 homes across the UK outside London.
“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,” said Sigma Capital Group chief executive officer Graham Barnet.
“This is an exciting first step for the company into a new key geography.”
Barnet said the move into London meant that Sigma's property delivery platform now reached across “most of the mainland UK”, providing the firm 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.”