New move for regeneration firm
Sigma raises £20m for private rented sector
The Edinburgh-based firm, which has joint ventures with Gatehouse Bank and housebuilder Grainger, is targeting the development of family homes on up to eight sites in the Greater Manchester and Liverpool regions in early 2016.
These new rental homes are expected to produce net income in excess of £2m a year and an indicative £13m of capital uplift. At the end of the development phase of these assets, the directors intend to reinvest capital and income for further development opportunities.
Chief executive Graham Barnet said: “This has been a long-term aim for Sigma and the placing marks an important step in the ongoing development of Sigma.
“There is an urgent need for new housing in the UK and we look forward to developing our own private rented sector assets as well as continuing to deliver new rental homes under our partnership model.”
Sigma reported pre-tax losses had more than doubled to £414,000 in the six months to the end of June as revenues fell 41.8% to £1m.