Sigma Capital Group is to expand its agreement with Gatehouse Bank to deliver PRS homes in Manchester and Merseyside.
The new arrangement will target the construction of 10,000 PRS homes valued at £1bn over the next five years, and modifies the existing partnership intended to deliver 6,600 homes.
The first phase of development, which began last November, will deliver 927 homes across 14 sites in Greater Manchester and Merseyside, at cost of £106m.
The expanded PRS portfolio is being procured with Sigma’s house building partner, Countryside Properties, and lettings management partner, Direct Lettings. A dedicated lettings brand, Difrent, has been established for the Gatehouse portfolio.
Henry Thompson, chief executive of Gatehouse, said: “Following the ongoing success of Phase 1 with developments in Greater Manchester and Merseyside, we are happy to extend our involvement to a bigger development programme.
“Gatehouse Bank is now looking to deploy further capital into a second phase, followed by a regular rolling programme of investment to create a £1bn portfolio. Phase two discussions are well advanced, with the next sites identified.”
Graham Barnet, chief executive of Sigma, said: “Gatehouse has led the way as a funder in the PRS space and this acceleration and expansion of our activities with the company is evidence of the quality and success of our initial phase and the delivery platform we have built with Countryside and Direct Lettings.”
Greg Clark, secretary of state for communities and local government, said: “It is encouraging that Sigma is harnessing up to £1bn of investment for the construction of 10,000 rental homes in the UK. Underpinning the Sigma model is its work in partnership with local authorities, who have a crucial role to play in the rapid delivery of new housing.”
