Sigma Capital sells completed Salford site to the PRS REIT

Private rented sector (PRS) residential development and urban regeneration specialist Sigma Capital announced the sale of a completed PRS development site to the PRS REIT for £11.7m on Thursday, as well as a forward contract with the PRS REIT over a further site.

The AIM-traded firm said the completed PRS development site was located in Salford, Greater Manchester and consisted of 73 newly-built properties for the family rental market.

It said the properties comprised a mixture of two, three and four bedroom family homes, and together provided a rental income of around £0.7m 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 was agreed with the PRS REIT.

The site, once completed, would comprise 72 new homes, and was expected to yield a rental income of around £0.6m per annum.

Its gross development cost would be £9.2m.

“Including the Wakefield site, Sigma has five PRS sites at various stages of development,” the Sigma board said.

“These sites once completed will deliver [around] 280 new family rental homes for a gross development cost of £46.3m, and will provide an estimated rental value of £2.85m per annum.

“Besides Wakefield, the other development sites are at Harlow in Essex, Nuneaton in Warwickshire, Telford in Shropshire, and Wigan in Greater Manchester.”

Sigma confirmed that all the sites were under forward contract for acquisition by the PRS REIT once completed and let.

The PRS REIT retained exclusive access to Sigma's PRS platform, and was sourcing up to a maximum of a third of its portfolio through the purchase of completed PRS development sites.