Sigma Capital Group PLC Sale of Completed PRS Site (0154M)

TIDMSGM

RNS Number : 0154M

Sigma Capital Group PLC

03 January 2019

AIM: SGM

SIGMA CAPITAL GROUP PLC

("Sigma" or the "Company")

Sale of PRS site

Sigma, the Private Rental Sector ("PRS"), residential development and urban regeneration specialist, is pleased to announce the sale of a completed PRS development site to The PRS REIT plc ("the PRS REIT") for c. GBP11.7m and a forward contract with the PRS REIT over a further site. Both agreements have also been reported by the PRS REIT today in a separate announcement.

The completed PRS development site is located in Salford, Greater Manchester and consists of 73 newly-built properties for the family rental market. The properties comprise a mixture of two, three and four bedroom family homes and together provide a rental income of c. GBP0.7m per annum. Prior to its sale, the site was independently valued by Savills on behalf of the PRS REIT.

In addition, a forward contract over a site near Wakefield has been agreed with the PRS REIT. The site once completed will comprise 72 new homes, and is expected to yield a rental income of c. GBP0.6m per annum. Its gross development cost ("GDC") is c. GBP9.2m.

Including the Wakefield site, Sigma has five PRS sites at various stages of development. These sites once completed will deliver c. 280 new family rental homes for a GDC of c. GBP46.3m and will provide an estimated rental value ("ERV") of c. GBP2.85m per annum. Besides Wakefield, the other development sites are at Harlow in Essex, Nuneaton in Warwickshire, Telford in Shropshire, and Wigan in Greater Manchester. All the sites are under forward contract for acquisition by the PRS REIT once completed and let.

The PRS REIT retains exclusive access to Sigma's PRS Platform and is sourcing up to a maximum of a third of its portfolio through the purchase of completed PRS development sites.

Enquiries:

 
Sigma Capital Group    Graham Barnet, Chief Executive    T: 020 3178 6378 
 plc                                                      (today) 
                       Malcolm Briselden, Finance        T: 0333 999 9926 
                        Director 
 
KTZ Communications     Katie Tzouliadis, Dan Mahoney     T: 020 3178 6378 
 
N+1 Singer             James Maxwell, James Moat,        T: 020 7496 3000 
 (NOMAD and Broker)     Ben Farrow 
 

NOTES TO EDITORS

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 the Company's Investment Adviser. It sources investments and manages the assets of The PRS REIT plc and advises the Alternative Investment Fund Manager ("AIFM") and the PRS REIT on a day-to-day basis in accordance with the PRS REIT's Investment Policy. The Investment Adviser is an appointed representative (reference number: 776293) of the AIFM.

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. In its Initial Public Offering, on 31 May 2017, the Company raised GBP250m (gross) of equity capital, and, on 20 February 2018, raised a further GBP250m through an additional Placing. Both fundraisings were supported by the UK Government's Homes England (formerly Homes and Communities Agency), with direct investments totaling c. GBP30 million.

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January 03, 2019 02:00 ET (07:00 GMT)