Deal signed for 80 new Broughton homes

REGENERATION specialist Sigma InPartnership has agreed a deal with partner Salford City Council to build a new phase of homes in Higher Broughton.

The firm is set to build 80 new homes in the area through the Higher Broughton Partnership – consisting of Sigma Inpartnership, Salford City Council and RBS.
It will be paid a base fee of £350,000 and will gain a share in the value of the units, which will be realised either through an equity stake or via cash returns when sold at a profit.

Currently, it is estimated that Sigma will receive a further £150,000 based on current market conditions.

Development is due to start in the summer, with sales expected throughout 2013 and 2014.

Planning consent has been granted by Salford City Council for the homes, and Countryside Properties is currently underway with the land purchase and site preparation.

Sigma, which this morning reported a 34% increase in revenues to £2.5m on the back of its “transformational” acquisition of InPartnership in August last year, also said that it is awaiting a planning decision on its £9m healthcare and retail scheme at Newbury Place in Higher Broughton.

Once this 30,000 sq ft development – the retail element of which is pre-let to Tesco – is achieved, it will trigger completion of a development contract that will bring in more income to the Higher Broughton Partnership. A decision is expected next month.

Graham Barnet, chief executive of Sigma, said: “Sigma has an instrumental role is assisting in the regeneration of Higher Broughton in Salford via the unique partnership that has been formed between Salford City Council, Royal Bank of Scotland and Sigma InPartnership.

“This partnership, the Higher Broughton Partnership, has made considerable progress over the last six months in moving forward with the regeneration scheme.

“The grant of detailed planning consent for 80 new homes represents further progress and we expect to hear news of our submission for the development of a major new health care and retail centre at Newbury Place in May, which will unlock further value for the partnership.”