City Wharf deal to bring in £3m for Sigma Capital

Published on Friday 16 May 2008 21:18

EDINBURGH-BASED investment house Sigma Capital Group is set to bank more than £3 million after completing its seventh property acquisition.

The deal, made via Sigma's Strategic Investment Management property subsidiary, involves the City Wharf development in Aberdeen.

Details of the agreement were announced last November. However, Sigma yesterday said its completion had been delayed as a result of "market conditions".

The 40m deal, which is being funded by bank debt and third-party investor equity, is expected to generate gross revenues of 3.1m for Sigma in 2008.

City Wharf will comprise a mixture of office and leisure facilities. Existing tenants include Aberdeen City Council and transport giant FirstGroup.The development features a casino, which is pre-let to Grosvenor Casino, and a 107-bedroom Ibis hotel.

Graham Barnet, chief executive of Aim-listed Sigma, said: "The City Wharf development in Aberdeen city centre is a high-quality commercial development, which fulfils our investment criteria.

"Despite the tightening of financial liquidity and reduction in consumer confidence in the market, our property subsidiary is continuing to see interesting opportunities, which we are well-positioned to take advantage of."

Sigma's six other property partnerships have raised funds totalling 264m.

Arbuthnot analyst Robert Sanders said: "We are encouraged by the completion of the seventh property acquisition."