Sigma and Six Bidco reach deal for acquisition

Housing developer Sigma Capital Group has reached a deal to sell the business to Six Bidco, a new subsidiary of private equity real estate fund manager, PineBridge Benson Elliot.

The boards have now agreed a purchase price of £188.4m.

Sigma decided to review the strategic options of the business last year to fund its future growth and appointed Rothschild & Co to run a private sale process.

The offer follows a competitive sale process which attracted strong interest from several parties.

Graham Barnet, CEO and founder of Sigma, said: “We are delighted that our independent directors intend to recommend this offer from PineBridge Benson Elliot, having reviewed a number of options from other parties.

“We know the team well and believe that our complementary skills, experience and sector knowledge, as well as PineBridge Benson Elliot’s capital backing, will make a powerful combination, and enable Sigma to expand its activities significantly.

“Sigma has been a pioneer in the delivery of new, single-family homes in the private rented sector, creating an unrivalled property delivery and management platform.

“We believe we have delivered one of the largest number of new family rental homes in the UK. We also manage the rental of thousands of homes for our partners.

“The need for high-quality, professionally-managed rental homes remains a critical unmet need in the UK, and we look forward to developing our model further in this exciting next step with PineBridge Benson Elliot.” 

 

Joseph De Leo, PineBridge Benson Elliot

Joseph De Leo, managing partner of PineBridge Benson Elliot, said: “Having spent the last number of months growing our understanding of the company’s many strengths and its strategic priorities as it strives to unlock its potential, we believe that the combination of our capital backing; strategic support; deep expertise; and track record can be an effective catalyst for achieving Sigma’s growth ambitions over the coming years.

“Sigma operates in an important part of the market that has shown remarkable resilience over the past year and, in partnership, we can further build on the successful UK housing platform the Sigma team have established.”

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