Edinburgh-based housing and urban regeneration specialist Sigma Capital has struck a partnership deal that aims to create more than 5,000 private rented homes over the next five years.
The tie-up with housing and construction company Keepmoat will focus on delivering two-, three- and four-bedroom properties in locations across the north-east of England, Yorkshire and the East Midlands. The homes have a potential investment value of £800 million.
Sigma will manage investment and lettings while Keepmoat will procure the land and take the lead on the design, planning and building processes.
Graham Barnet, chief executive of Sigma, said: “We are very pleased that Keepmoat has chosen to work with Sigma in its first development activity in the private rented sector (PRS) market, and believe that it underscores Sigma’s success in the PRS sector.”
“In line with Sigma’s strategy, this partnership will enable us to expand into other parts of the UK, where currently we do not have coverage. It also complements our existing partnership with Countryside Properties by significantly increasing our construction resources.”
Sigma recently hailed a “landmark year” for the business as it taps into Britain’s booming demand for private rented homes. While its focus has been on sites in Manchester and Liverpool, Barnet said in April the firm had been “looking at a few things in Scotland”.
It reported a near ten-fold increase in profit before tax during 2015, to £2.14m.