Housebuilder announces funding boost, taking reserves to £900m
PRS REIT, the Manchester-based real estate investment trust established to invest in new-build homes for the Private Rented Sector, has had a further £200m of debt facilities approved with Scottish Widows and Lloyds Bank.
The facilities were negotiated by the company’s investment adviser, Sigma PRS Management, and bring the total gross balance of deployable funds available to the company to £900m.
These funds are already fully committed to development sites that, once finished, are expected to create a portfolio of around 5,600 high-quality new rental homes.
Last week, the company was pleased to announce that it had taken delivery of its 1,000th home.
PRS REIT is also hosting a Capital Markets Day for institutional investors today.
The event will include a presentation from a number of executives from Sigma Capital Group, the parent company of the PRS REIT’s investment adviser, including Graham Barnet, Sigma’s chief executive and founder.
There will also be presentations from Ian Sutcliffe, chief executive of housebuilder Countryside Properties, Duncan Sutherland, Sigma’s regeneration director and board member of Homes England, and Craig Langley, director, valuation at Savills, on the benefits and strengths of the PRS REIT’s model.
In March PRS REIT unveiled strong first half results.
In the six months to December 31, 2018, gross rental income leapt from £600,000 the previous year to £2.3m, while pre-tax profits of £7.5m compared with £500,000 a year ago.
Total dividends paid since the company launch in May 2017 was 7p per share. The target total dividend for the full year 2019 is 5p per share.
It said its completed assets were performing well and demand for its well-located, professionally-managed houses remained high.
