Homes developer signs contracts on four new development sites
PRS REIT has announced two site acquisitions, and a deal on a further two development sites.
Manchester-based PRS REIT (real estate investment trust) was established to invest in new-build homes in the Private Rented Sector (PRS)
The PRS REIT is the first UK-quoted REIT wholly dedicated to investment in new family rental homes.
The deal announced today involves the immediate acquisition of two sites, and the entering into forward contracts for another two.
The four sites are anticipated to deliver a total of around 464 new family rental homes for a gross development cost of about £68.2m.
The two newly-acquired development sites are located in Walkden, Salford, and in Knowsley, Merseyside.
Once constructed and fully let, these sites are expected to yield a rental income of around £2.1m per annum from up to 240 homes, with completion anticipated in the first half of 2020.
Sigma PRS Management Limited, the PRS REIT’s investment advisor, has sourced these sites and will manage the delivery of the new homes, with Countryside Properties as construction partner.
The forward contract agreements are over two sites, in Telford and Salford.
Acquisition of these sites is triggered by detailed planning approval, the process of which is currently under way.
The estimated rental value of the 224 new homes to be constructed across the two sites is about £2.1m per annum.
Sigma will manage the delivery of the construction project, with Countryside Properties as construction partner.
Following the acquisition of the two additional development sites, the PRS REIT has a total of 36 sites that are either completed or contracted, which equates to approximately 3,000 new family homes.
The gross development cost of the 36 sites is approximately £452m, compared with £384m at the end of September this year, and the homes have a estimated rental value of around £28m per annum, up from £24.1m at September 30.
