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Sigma sells £9m Manchester development to PRS REIT
Private rented sector, residential development and urban regeneration specialist Sigma Capital announced the sale of a completed private rented sector site on Friday for £9.08m.
The AIM-traded firm said the site was independently valued on behalf of the PRS REIT by Savills.
Situated in Greater Manchester, the site comprised 59 newly-built family rental homes, with a mix of two-, three- and four-bedroom homes.
The company said the homes were fully let, with demand said to be "strong" and the rental value of the portfolio standing at £0.54m per annum.
Sigma said it had a further six private rented sector sites currently under construction under a forward purchase agreement with the PRS REIT upon completion.
Three of those sites wer expected to be completed by the end of 2018, and would comprise the balance of PRS REIT's first acquisition portfolio, with the remaining three sites due for completion in 2019.
Up to a maximum of a third of the PRS REIT's new properties were expected to be sourced through the purchase of fully completed PRS sites, and the PRS REIT retained exclusive access to Sigma's PRS Platform, the company explained.
"We are pleased to report the sale, to the PRS REIT, of our PRS site in Greater Manchester, which is completed and fully let," said Sigma Capital chief executive Graham Barnet.
"This is in line with the PRS REIT's strategy to acquire a certain proportion of completed PRS sites, alongside acquiring and developing sites."
Barnet said the firm's new rental homes had been built principally for families, with demand for the new homes - let under the Simple Life brand - having been strong.
"We have a further six PRS sites under construction for onward purchase by the PRS REIT, which are due to complete during the course of this year and next, and we expect to commence further sites prior to the end of 2018."