Springfield teams up with Sigma on Scottish PRS venture
Scottish housebuilder Springfield Properties has signed a collaboration agreement with a subsidiary of Sigma Capital Group to acquire and develop private rented homes in Scotland.
The agreement with Sigma’s investment adviser, Sigma PRS Management, targets the release of “hundreds of homes over the coming years”. It represents Springfield’s first partnership in the sector.
A number of Springfield sites, primarily the group’s Village developments in Dundee, Edinburgh, Perth and Stirling as well as its development in Inverness, have been identified as potential sites for PRS development.
Scottish housebuilder Springfield Properties has signed a collaboration agreement with a subsidiary of Sigma Capital Group to acquire and develop private rented homes in Scotland.
The agreement with Sigma’s investment adviser, Sigma PRS Management, targets the release of “hundreds of homes over the coming years”. It represents Springfield’s first partnership in the sector.
A number of Springfield sites, primarily the group’s Village developments in Dundee, Edinburgh, Perth and Stirling as well as its development in Inverness, have been identified as potential sites for PRS development.
Subject to meeting certain criteria, Sigma will purchase part of these sites from Springfield and will award Springfield a fixed-cost design and build contract to deliver housing on the acquired land.
Following handover of the completed homes by Springfield to Sigma, the homes will be let and managed by Sigma under its Simple Life brand. The partnership will also seek to identify other sites for Sigma to acquire for the purpose of PRS housing development by Springfield.
Earlier this year, Sigma launched the Sigma Scottish PRS Fund, with initial resources of £43m, including £30m investment from the Scottish government’s Building Scotland Fund in the form of a revolving credit facility.
This was the first dedicated vehicle to focus on the creation of new rental homes for families in the private rented sector in Scotland.
Innes Smith, chief executive of Springfield Properties, said: “This agreement stands to accelerate our delivery of homes, particularly on Village developments, and we expect it to provide a further revenue stream, alongside our existing private and affordable housing activity, with good visibility over cash flows.”
Graham Barnet, chief executive of Sigma, added: “Springfield has a well-established reputation for delivering quality homes in Scotland and this partnership brings significant benefits for both sides, especially in accelerating the rate at which mixed-tenure sites can be developed.”
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