Sigma announced that it has agreed a major joint venture with Gatehouse Bank plc which will support the roll-out of an initial approx. 2,000 new privately rented residential properties in the UK, with the potential to grow the portfolio to approx.6,600 new rental homes once fully developed. The initial approx.2,000 new rental homes have a total development cost of approx. £200 mln (€271 mln) and the development cost of the entire proposed portfolio is estimated at approx. £700 mln (€950 mln).
The new homes will be built on land procured and developed by Sigma and the model is underpinned by Sigma’s existing three local authority partnerships, with Sigma currently in discussions with other potential local authority partners.
The Rt Hon. David Cameron, MP, Prime Minister and The Rt Hon. Vince Cable, UK Secretary of State for Business, Innovation and Skills, have confirmed their support of the joint venture.
The initial c.2,000 units are being supported in particular by Sigma’s local authority partnerships with Liverpool and Salford City Councils, and 22 sites, totalling over 90 acres, have already been identified across the North West. The joint venture will deliver significant high quality housing stock and assist with the regeneration objectives of local authority partners in a cost efficient and timely way.
Sigma believes that the c.2,000 new rental homes would comprise one of the largest single new build residential housing portfolios in the UK. The Group will generate revenues from asset management fees during both the construction and investment phases and will also participate in the capital upside of the joint venture vehicle.
Source: Gatehouse Bank