Sigma’s £114m rental homes roll out is launched

SIGMA has launched the second phase of its £1bn joint venture to deliver 10,000 new rental homes with Gatehouse Bank over the next five years.

The second phase has a total development cost of £114m and will deliver about 900 new rental homes across 10 sites in the North West.

It brings the current total development cost of new PRS homes underway with Gatehouse to more than £200m. The venture is being supported by institutional and sovereign shareholders from the State of Kuwait.

The new homes will be located across Greater Manchester and Liverpool City Region with construction  already under way.

As with the first phase, Sigma’s PRS delivery partners are Countryside Properties and Central Lettings Solutions (previously called Direct Lettings).
 
Although Sigma is headquartered in Edinburgh, its PRS operation is run from Manchester. It also has an office in London.

Sigma is currently identifying sites in new regions, including the Midlands and the South of England, for future phases of the programme.
 
The first phase of Sigma’s PRS programme with Gatehouse, which started in November 2014 and comprises 918 new homes, is progressing well.

By the end of December some 350 units will have been completed across 15 sites, with four sites fully complete and a further four currently in the process of completion.

Sigma’s partnership with Gatehouse was singled out by Commercial Secretary to the Treasury, Lord O’Neill at an event held at 10 Downing Street announcing the launch of an initiative to encourage overseas investment into the UK housing market.

Lord O’Neill said: “The Northern Powerhouse is becoming a bigger attraction for foreign investment and this announcement highlights the important role it can play in delivering much needed local infrastructure.

“This development will not only offer hundreds of new family homes across the north but it will also support vital regeneration projects in some of our great northern cities.

“Improving the flow of international capital into the UK is a key part of plans to build the Northern Powerhouse and this investment from Kuwait is very welcome news.”

Sigma chief executive Graham Barnet said: “The announcement reinforces Sigma and its partners’ position at the forefront of private rental housing development in the UK.
 
“We are delighted to have the continued support of the UK government and sovereign shareholders from the State of Kuwait as we launch the next phase of our collaboration with Gatehouse.
 
“Together with our partners, we will be delivering a further 900 high quality family homes across Greater Manchester and Greater Liverpool.

“Our efforts to increase the supply of rental housing and assist with the regeneration of these areas will serve to increase the appeal of the Northern Powerhouse, making it an even more attractive place for UK workers to live with their families.”

Gatehouse chairman Fahed Boodai: “Our activities in PRS are a major strategic initiative for Gatehouse and further position the firm as a leading provider of institutional-quality real estate investments.”