PRS REIT PLC (The) Acquisition of PRS Sites (0148M)
January 03 2019 - 2:00AM
UK Regulatory
TIDMPRSR TIDMSGM
RNS Number : 0148M
PRS REIT PLC (The)
03 January 2019
PRSR.L
The PRS REIT plc
(the "Company" or "PRS REIT")
Acquisition of PRS Sites
The PRS REIT, the closed-ended real estate investment trust
established to invest in new-build homes for the Private Rented
Sector ("PRS"), is pleased to announce that it has signed contracts
over nine additional PRS sites. One site is a newly-completed
development of homes that has been acquired from Sigma PRS
Management Limited, the Company's Investment Adviser, and seven are
development sites, with construction already underway at some
sites. The remaining site has been bought under a forward contract
with the Investment Adviser and will comprise another
fully-completed development at the point at which it is fully
acquired.
The nine sites are expected to deliver approximately 775
additional new family homes and provide a forecast GBP6.7m per
annum in rental income once completed and let. The gross
development cost ("GDC") of these sites is approximately GBP107.7m.
Further details are provided below.
These new sites take the total number of sites that are either
completed or contracted to 42, and the total number of new rental
homes to about 3,575, once fully built. The total GDC of these
sites is approximately GBP530m, and the new homes are expected to
generate a combined rental income of GBP33.2m per annum once
completed and let.
The PRS REIT will issue its quarterly report for the three
months to 31 December 2018 by mid January and will declare the
interim quarterly dividend relating to this quarter at the end of
January.
Completed PRS site
The completed PRS site is located in Salford, Greater
Manchester, and consists of 73 newly-built homes, offering a
mixture of two, three and four bedroom properties for the family
rental market, with a total estimated rental value ("ERV") of
GBP0.7m per annum. The site has been acquired for GBP11.7m, having
been independently valued by Savills, and was purchased from Sigma
PRS Management Limited, a wholly owned subsidiary of Sigma Capital
Group plc.
The Company has entered into a forward contract with Sigma PRS
Management Limited to acquire a further site once it has been fully
completed and let. This site, near Wakefield, will comprise 72 new
homes, and is expected to yield a rental income of GBP0.6m per
annum.
Development sites
The seven development sites that have been acquired are located
in the North-West and West Midlands - in Wolverhampton, Rochdale,
Wigan, and Runcorn. Together the sites will deliver approximately
630 additional new homes once construction is complete. The
development will be managed by the Investment Adviser. The sites
have a combined GDC of about GBP87.3m and are expected to yield a
rental income of GBP5.4m per annum.
For further information, please contact:
The PRS REIT plc Tel: 020 3178 6378 (c/o KTZ
Steve Smith, Non-executive Communications)
Chairman
Sigma PRS Management Limited Tel: 0333 999 9926
Graham Barnet
Graeme Hogg
N+1 Singer Tel: 020 7496 3000
James Maxwell, James Moat,
Ben Farrow
Stifel Tel: 020 7710 7600
Mark Young, Neil Winward, Gaudi
Le Roux
G10 Capital Limited (AIFM) Tel: 020 3696 1302
Gerhard Grueter, Anthony Wood,
Gaia Udage
KTZ Communications Tel: 020 3178 6378
Katie Tzouliadis, Dan Mahoney
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
GBP500m (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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END
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