Acquisition of Sites
20 September 2018
PRSR.L
The PRS REIT plc
(the "Company" or the "PRS REIT")
Acquisition of Two PRS Sites
and
Forward Contract Agreements on Three Further PRS 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 acquired a development site for the construction of 145 new family rental homes, with a gross development cost of c. £15.2m, and purchased a newly-completed PRS site, comprising 63 family homes for c. £10.3m.
The development site is located in Wigan, in Greater Manchester, and is expected to generate c. £0.95m of rental income per annum once fully let. Construction on the site is expected to be completed in the first half of 2020. Sigma PRS Management Limited, the PRS REIT's Investment Advisor, has sourced this investment and will manage the delivery of the new homes, and Countryside Properties is the construction partner.
The newly-completed PRS development is situated in Smethwick, near Birmingham city centre, and has been acquired from Sigma Capital Group plc ("Sigma Capital"). It generates an annualised rental income of c. £0.6m per annum from a mix of 2, 3 and 4 bedroom homes. It was independently valued by Savills.
In addition, the PRS REIT has agreed a forward contract to acquire a development site in Harlow, Essex for a further c. 94 units, with a total delivery cost of c. £27.3m. The estimated rental value ("ERV") of these homes once let is c. £1.6m per annum. As above, Sigma PRS Management Limited will manage the delivery, with Countryside Properties as construction partner.
The PRS REIT has also signed forward purchase agreements with Sigma Capital to acquire two further PRS sites that are currently being developed. The two sites, in Nuneaton in the West Midlands, and Harlow, Essex, will comprise 50 and 28 units respectively, and are expected to be completed in the second half of 2019. The combined ERV is c. £1.1m per annum.
Following the acquisitions, the PRS REIT has 30 sites, either completed or under construction, which equates to approximately c. 2,130 new family homes. The gross development cost of these sites is c. £331.0m and the homes have a combined ERV of c. £20.5m per annum.
The Company expects to publish its audited results for its maiden financial period, covering the 13 months to 30 June 2018, on 10 October 2018. At the same time, it will provide its first quarterly update for the current financial year.
For further information, please contact:
|
The PRS REIT plc |
Tel: +44 (0)20 3178 6378 |
|
Sigma PRS Management Limited |
Tel: +44 (0)333 999 9926 |
|
N+1 Singer |
Tel: +44 (0)20 7496 3000
|
|
Stifel |
Tel: +44 (0)20 7710 7600 |
|
G10 Capital Limited (AIFM) Gerhard Grueter, Anthony Wood, Gaia Udage
|
Tel: +44 (0)20 3696 1302 |
|
KTZ Communications Katie Tzouliadis, Emma Pearson |
Tel: +44 (0)20 3178 6378 |
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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