Urban regeneration specialist Sigma Capital has raised £20 million through a share placing to build its own “substantial” portfolio of private rented housing.
The Edinburgh-based firm, which has existing rental joint ventures with Gatehouse Bank and housebuilder Grainger, said establishing its own assets would help boost returns and generate extra long-term recurring income.
Chief executive Graham Barnet said: “This has been a long-term aim for Sigma and the placing marks an important step in the ongoing development of Sigma.
“There is an urgent need for new housing in the UK and we look forward to developing our own private rented sector assets as well as continuing to deliver new rental homes under our partnership model.”
The fundraising came as Sigma said its pre-tax losses had more than doubled to £414,000 in the six months to the end of June, from £201,000 a year ago, as revenues fell 41.8 per cent to £1m.