Sigma Capital reaps rewards of transformational deal
Urban regeneration and PRS (private rented sector) specialist, Sigma Capital Group, announced exemplary half year progress today.
The Manchester-based business saw revenues soar 168% to £4.8m in the six months to June 30, while pre-tax profits stormed ahead by 315% to £4.2m.
Today’s financial results reflect the benefits of the launch of The PRS REIT plc, in 2017, which has fundamentally transformed Sigma’s growth prospects.
The PRS REIT plc is the first UK-quoted REIT (real estate investment trust) wholly dedicated to investment in new family rental homes.
Sigma said the continuing major expansion of its PRS activity was underpinned by the successful completion of a further fundraising of £250m for The PRS REIT plc in February 2018.
The PRS REIT plc’s resources are expected to grow to around £900m, including additional gearing, which will support the construction of approximately 6,000 new rental homes.
Sigma’s PRS platform’s delivery capability was significantly increased with the signing of a major new collaboration agreement with Countryside Properties in June 2018.
The agreement provides for the delivery of more than 5,000 new homes over the next three years.
Sigma also reported the sale of a fully completed and let site to The PRS REIT plc for around £9.1m, with another completed PRS site sold for approximately £10.3m, post reporting period.
Five Sigma-funded sites are now under construction and are expected to be sold to The PRS REIT plc, subject to the fulfillment of contracted terms.
Sigma chief executive Graham Barnet said: “Sigma’s revenues and pre-tax profits for the first six months of the year outstrip the whole of 2017.
“This acceleration in the group’s growth and earnings reflects the successful launch of the PRS REIT in May last year, which has transformed our business model.
“We believe that Sigma is well-placed for continuing growth, and expect profitability in the second half to overtake the first half, with 2019 showing even greater value creation over 2018.”
He added: “Demand for family housing for rent remains very strong against a background of structural undersupply and growing need.
“We are pleased to play our part in helping to meet this shortfall, and look forward to delivering the PRS REIT’s target of thousands of high-quality new homes across the major regions of England.”
