£250m of shares in PRS REIT launched on LSE

Some £250m worth of ordinary shares in Manchester-based PRS REIT – backed by Sigma Captial Group – have been admitted to trading on the specialist fund segment of the main market of the London Stock Exchange today.

Sigma PRS Management, a subsidiary of Sigma Capital Group, an AIM quoted private rented sector, residential development and urban regeneration specialist, has been appointed as the investment adviser.

G10 Capital has been appointed as alternative investment fund Manager to the PRS REIT. Nplus1 Singer Advisory acted as financial adviser and joint bookrunner and Stifel Nicolaus Europe acted as joint bookrunner.

PRS REIT chairman Stephen Smith: “First dealings in the shares of The PRS REIT commence today and I’m delighted that its launch has been so well-supported by both institutional and qualifying private investors.

“We are especially pleased that the Government’s Homes and Communities Agency is supporting the PRS REIT with a direct investment.

“There is a structural undersupply of new homes in the UK and we believe that institutional investment into the private rented sector market will help to provide much needed supply.”

Graham Barnet, founder and chief Executive of Sigma Capital Group plc, said: “This is the first quoted REIT established to invest in opportunities in the private rented sector and we believe it presents investors with an attractive investment opportunity.

“There are unprecedented levels of demand for new rental homes and the market for family houses is particularly under-supplied.

“The PRS REIT will be focused on high quality family housing for those earning within the UK’s average household income band. We look forward to helping to establish what we hope will be one of the largest PRS portfolios in the UK.”