The PRS REIT raises £250m in share placing to build thousands of homes

The PRS REIT, advised by Manchester-headquartered Sigma Capital Group, has raised £250m through a successful share placing.

Sigma said as a result of today’s announcement its trading performance for the current financial year was expected to be significantly above current market forecasts when its full-year results for the 12 months to December 31 are published in April.

Launched on May 31 last year, the PRS REIT is a closed-end trust established to invest in new build, private rented sector homes.

Sigma’s wholly owned subsidiary, Sigma PRS Management Ltd, is the investment adviser, sourcing investments and managing the assets of the PRS REIT, and advising it on a day-to-day basis in accordance with its investment policy.

A pipeline of approximately 3,800 new homes across the UK with a total value of about £540m has been identified and is under active appraisal by Sigma.

This is in addition to the current committed investment to create about 1,720 new homes in North West, Midlands and South Yorkshire.

Sigma Capital Group founder and chief executive Graham Barnet said: “After fully committing the IPO funds ahead of schedule, it is very satisfying to have raised an additional £250m for the PRS REIT to invest in thousands more newly-built family rental houses.

“Family rental houses remain a critically undersupplied area of the rental market and we are creating well-designed high quality houses near good schools and transport links, which will be professionally managed and offer families security of tenure. Homes England’s involvement, following on from IPO, is also a tremendous signal and we would like to thank the agency for its committed support.

“We look forward to the next phase of development as the PRS REIT’s investment adviser.”