Sigma Capital Group, the Edinburgh-based residential development and urban regeneration specialist, has hailed an “exciting first step” into London’s crowded private rental property market.
The firm, which focuses on family homes, said its property delivery platform now reached across most of mainland UK after the push into the nation’s capital. The move sees Sigma acquire two development sites, in Havering and Barking, with the prospect of “greater activity over the coming year”, the firm said.
Its drive into London follows the group’s recent launch in Scotland, where it has entered into a collaboration agreement with housebuilder Springfield Properties. Hundreds of new family homes for rental are to be built across Scotland under the tie-up, with five key cities targeted – Dundee, Edinburgh, Inverness, Perth and Stirling.
Outside London, Sigma has delivered more than 3,000 new rental homes, through its private rented sector (PRS) property platform, with some 1,300 delivered for the PRS REIT real estate investment trust, which is establishing a large-scale portfolio of family homes. A further 3,400 homes are currently under construction for the fund.
Graham Barnet, chief executive of Sigma Capital Group, said: “We are delighted to announce the expansion of Sigma’s build-to-rent activities into London, with the acquisition of our first two sites. This is an exciting first step for the company into a new key geography.
“The move into London means that Sigma’s property delivery platform now reaches across most of mainland UK, providing us with significantly increased development opportunities. It also takes our letting brand, Simple Life, into the London market.
“Our long-term partner, Countryside, will develop both London sites with Fresh Wharf development completing by the end of next year and Beam Park in spring 2021.”
The combined total gross development cost of the two London sites is some £43.8 million, the group added.
Ian Sutcliffe, group chief executive at Countryside Properties, said: “We have delivered over 4,000 private rented homes over the past five years together as part of differentiated mixed tenure approach to regeneration sites. We anticipate continuing growth from our relationship with Sigma in London and beyond.”
Last month, Sigma provided an upbeat outlook for the year and hailed its push into the Scottish private rented sector after revealing solid first-half numbers. Until recently, the firm had been focused on property projects and investments south of the Border.
The interims showed that revenues in the six months to 30 June increased by 19 per cent to £5.8m. Profit before tax rose 3 per cent to £4.3m.