Grainger, the UK’s largest listed residential property owner and manager, announces that it has signed an agreement with Sigma Capital Group plc, the residential and urban regeneration specialist, which grants grainger the exclusive option for an initial four year term to acquire development opportunities of 100 units or more sourced by Sigma, to create a large-scale Private Rented Sector (PRS) portfolio across the key cities of England outside Greater London.
Under the agreement, grainger will appraise each development opportunity individually. A number of sites have already been identified that grainger and Sigma are looking to progress.
At present, grainger expects to fully own the initial developments sourced by Sigma, although in the future it may also seek to syndicate its investment to third party investors, which could include Sigma. Sigma, in addition to sourcing development opportunities, is expected to act as development manager on the majority of projects and will earn a profit share on each development, split into a sourcing fee and a development management fee.
Andrew Cunningham, Chief Executive of grainger plc, said: “This agreement leverages both Sigma’s excellent relationships with Local Authorities and housebuilding partners across the UK and grainger’s proven track record in managing residential property, while providing an innovative new avenue for investment. We are at the forefront of the private rented sector and remain committed to delivering high quality new homes, benefiting local communities while delivering shareholder value.”
Source: Sigma Capital Group