Housing specialist announces acquisition of four more sites
PRS REIT has signed contracts for four development sites this month.
The Manchester-based closed-ended real estate investment trust established to invest in new-build homes in the Private Rented Sector (PRS) said three of the sites are development sites and the remaining site will be acquired once fully-completed.
The four sites are expected to deliver approximately 310 new family homes and yield £3.7m per annum in rental income once developed and let.
The gross development cost (GDC) of these sites is approximately £62m.
The total number of sites either completed or contracted now stands at 47, approximating to 3,882 new homes, once these sites are fully developed.
The total GDC of these 47 sites is approximately £591m, and the total rental income is forecast to be £36.7m per annum once completed and let.
In a separate announcement issued today, the company has declared an interim quarterly dividend of 1p per share, relating to the quarter to December 31, 2018, and reports that its interim results for the period to December 31, are expected to be published on March 12, at which point a further update on trading will be provided.
Of the three development sites under contract, one has been acquired and construction is under way.
This site is in Salford, Greater Manchester.
The other two sites are under contract to be acquired once planning approval processes are completed, which is expected during the first half of 2019. These sites are in Chester and Houghton Regis in Bedfordshire.
The three sites have a combined GDC of about £51.5m and are expected to deliver approximately 272 additional new homes and provide an estimated rental income of £3.1m per annum.
The development will be managed by the investment adviser, Sigma PRS Management.
The fourth site has been bought under a forward contract with the investment adviser and will be acquired once it has been completed and fully let.
This is anticipated to be in the first quarter of the calendar year 2020. The site is in Bury St Edmunds and will comprise 38 new homes, with an expected rental income of £600,000 per annum.
