Site acquisitions

RNS Number : 9755I

PRS REIT PLC (The)

30 November 2018

 

PRSR.L

The PRS REIT plc

(the "Company" or "PRS REIT")

Acquisition of two PRS Development Sites

and

Forward Contract Agreement on a further two PRS Development Sites

The PRS REIT, the closed-ended real estate investment trust established to invest in new-build homes in the Private Rented Sector ("PRS"), is pleased to announce that it has signed contracts on four new development sites, acquiring two immediately, and entering into forward contracts for the other two sites. The four sites are anticipated to deliver a total of c. 464 new family rental homes for a gross development cost ("GDC") of c. £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 c. £2.1m per annum from c. 240 homes, with completion anticipated in the first half of 2020.  Sigma PRS Management Limited ("Sigma"), 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 underway. The estimated rental value ("ERV") of the c. 224 new homes to be constructed across the two sites is c. £2.1m per annum. As noted above, 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 GDC of the 36 sites is c. £452m (30 September 2018: £384m) and the homes have a ERV of c. £28m per annum (30 September 2018: £24.1m).

For further information, please contact:

The PRS REIT plc Steve Smith, Non-executive Chairman	Tel: [phone] (c/o KTZ Communications)
Sigma PRS Management Limited Graham Barnet Graeme Hogg	Tel: [phone]
N+1 Singer  James Maxwell, James Moat, Ben Farrow	Tel: [phone]
Stifel Mark Young, Neil Winward, Gaudi Le Roux	Tel: [phone]
G10 Capital Limited (AIFM) Gerhard Grueter, Anthony Wood, Gaia Udage	Tel: [phone]
KTZ Communications Katie Tzouliadis, Emma Pearson	Tel: [phone]

NOTES TO EDITORS

About The PRS REIT plc
(www.theprsreit.com)

The PRS REIT is a closed-ended real estate investment trust established to invest in the Private Rented Sector and to provide shareholders with an attractive level of income together with the potential for capital and income growth.  It has raised a total of £500m (gross) through its Initial Public Offering, on 31 May 2017, and a subsequent placing in February 2018. Both fundraisings were supported by the UK Government's Homes England with direct investments.  

LEI:  21380037Q91HU97WZX58

About Sigma Capital Group plc
(www.sigmacapital.co.uk)

Sigma Capital Group plc is a private rented sector, residential development, and urban regeneration specialist, with offices in Edinburgh, Manchester and London. Sigma's principal focus is on the delivery of large scale housing schemes for the private rented sector. It has a well-established track record in assisting with property-related regeneration projects in the public sector, acting as a bridge between the public and private sectors.  Its subsidiary, Sigma PRS Management Limited, is Investment Adviser to The PRS REIT plc.

About Sigma PRS Management Limited

Sigma PRS Management Limited is a wholly-owned subsidiary of AIM-quoted Sigma Capital Group plc and is Investment Adviser to The PRS REIT plc. It sources investments and manages the assets of The PRS REIT plc and advises the Alternative Investment Fund Manager ("AIFM") and The PRS REIT plc on a day-to-day basis in accordance with The PRS REIT plc's Investment Policy. The Investment Adviser is an appointed representative (reference number: 776293) of the AIFM.

 

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