Sigma Capital launches PRS REIT

Sigma Capital has announced the launch of a £250m PRS REIT, the first to purely focus on the private rented sector. Private and institutional investors contributed to the funding and the government’s Homes and Communities Agency has made a direct investment of £25m.    The net proceeds of £245m will be used to invest in a portfolio of newly constructed schemes. Units will mainly comprise family homes and across England, with a focus on the largest employment centres outside London. A pipeline of 2,535 new homes, with a total cost of £375m, has already been identified and contracted, including a portfolio of £72m of assets either completed or under construction. First dealings in shares in the PRS REIT plc are expected on 31 May and the shares will trade on the specialist fund segment of the main market of the London Stock Exchange. Graham Barnet, chief executive of Sigma Capital Group and Sigma PRS Management, the investment adviser to the company, said: “There is an acute shortage of new rental homes across England and Sigma’s success in the private rented sector clearly demonstrates the unmet need for a high quality, professionally managed family homes in the English regions. “The PRS REIT will be funding new rental homes which are aimed at 26-45 year olds earning within the UK’s average household income band. Currently, the average family that cannot afford to buy has little choice and is faced with the prospect of renting relatively poor quality or poorly managed homes. The new homes funded by the PRS REIT are intended to be the polar opposite of this – high quality homes, near good schools and transport links, offering security of tenure.” To send feedback, e-mail Shekha.Vyas@egi.co.uk or tweet @shekhaV or @estatesgazette