Sigma Capital acquires three sites for its self-funded PRS portfolio

Sigma Capital's shares fell almost 1% on news it is acquiring three sites in the West Midlands and North West to deliver about 200 more new rental homes for its self-funded PRS portfolio.

The private rented sector specialist said the total gross development cost of the new homes, including land acquisition, was roughly £27m.

These deals took the total number of Sigma's self-funded developments to seven and extended its self-funded portfolio into the Midlands region.

Once the homes have been completed, Sigma said its own PRS portfolio would stand at roughly 420 units, located across Birmingham, Greater Manchester, Liverpool, Sheffield and Shropshire.

CEO Graham Barnet said the acquisitions came as Sigma moved towards its target of creating a self-funded portfolio with a total gross development cost of more than £60m.

"We will be using our funding facility with the HCA to deliver approximately 200 new rental homes across these sites, which are located in Birmingham, Telford and Atherton," he said.

"These new rental homes are also helping to unlock the delivery of a wider development scheme which includes new market-for-sale and affordable homes."

The three new sites are in Mafeking Road, Birmingham, Howe Bridge Mill, near Atherton in Lancashire, and Hinkshay Road, Telford. They would comprise a mix of two-, three- and four-bedroom rental family homes.

Construction was being undertaken by Sigma's partner, Countryside Properties. The first homes were expected to be available to rent in early autumn 2017.

At 13:42 GMT, shares in AIM-listed Sigma were down 0.68% to 73.5p each.