Sigma, the residential and urban regeneration specialist, has bought its first London site for its private rented sector portfolio.
Sigma aims to enter into a conditional contract with Barking Riverside, a joint venture between Greater London Authority and Bellway Homes, by 31 May on a 318-home proposed scheme in Barking, east London.
The exclusivity period runs until 31 March 2015, which allows Sigma or its funding partners to acquire the site and develop four apartment blocks. The 318 flats will include a high percentage of three-bedroom family homes.
The overall delivery cost of the site, construction costs and associated costs are estimated to be in excess of £50m.
Sigma expects site construction to start later this year.
The site is within the Barking Riverside development, a 443-acre site with outline planning permission for one of the largest residential regeneration schemes in the UK. It has planning permission for 10,800 mixed- tenure homes.
The agreement follows the creation of a major joint venture with Gatehouse Bank for a proposed £700m development of up to 6,600 rental homes for the PRS. Bank funding for the initial 2,000 homes in Greater Manchester and Liverpool is currently under negotiation.
Sigma expects to agree terms to acquire further sites in Greater London, the South East and elsewhere in the UK for its PRS portfolio.
London mayor Boris Johnson said: “This is a great boost for London’s newest suburb, Barking Riverside, one of the largest regeneration sites in Europe. This dynamic site continues to win design awards and has capacity for almost 11,000 homes. I welcome Sigma’s innovative purpose-built private rental housing model that will see us reach 1,000 high-quality homes at Barking Riverside.”
Ted Ayres, chief executive of Bellway Homes, added: “We are pleased to welcome Sigma on board at Barking Riverside, which is fantastic for the momentum of the project. We hope this will add further to the mix of housing being delivered in this emerging community.”
Graham Barnet, chief executive of Sigma, said: “We have been working with Barking Riverside for some time and are delighted to have reached this agreement for the creation of the first privately rented housing development on the Barking Riverside development. The inclusion of this site within our private rented portfolio begins to broaden our geographic presence as we aim to build a UK wide private rented residential portfolio.
“Barking Riverside is one of the largest and most ambitious development projects in the UK and we are delighted to be playing a small part in its delivery with such prestigious partners.”
annabel.dixon@estatesgazette.com
