25th Sep 2019 10:48
(Alliance News) - Private rented sector investor Sigma Capital Group PLC said Wednesday it has signed a "major collaboration" with Scottish affordable home housebuilder Springfield Properties PLC.
Sigma said the deal is targeting the delivery of "hundreds" of new rental homes in five Scottish cities: Edinburgh, Dundee, Inverness, Perth and Stirling.
Springfield noted this is the first partnership it has signed in the private rented sector.
The pair will collaborate to acquire and develop sites in Scotland for the private rental sector.
Springfield said "a number" of its sites have already been identified for private rental sector development, mainly situated in the housebuilder's Village developments.
Springfield will construct the homes for Sigma's property platform, under a fixed-cost design & build contracts. The completed homes will then be handed over to Sigma to let and manage.
Sigma will also actively search for sites for Springfield to develop.
The partnership further increases Sigma's involvement in Scotland, following the launch of Sigma Scottish PRS Fund in April this year. The fund has an initial GBP43 million to deploy, which includes a GBP30 million investment from the Scottish Government.
Sigma Chief Executive Graham Barnet said: "Springfield has a well-established reputation for delivering quality homes in Scotland and this partnership brings significant benefits for both sides, especially in accelerating the rate at which mixed tenure sites can be developed. We look forward to working with Springfield as we develop the partnership and extend our model in Scotland."
Springfield CEO Innes Smith added: "This agreement stands to accelerate our delivery of homes, particularly on Village developments, and we expect it to provide a further revenue stream, alongside our existing private and affordable housing activity, with good visibility over cash flows. It will also increase the number of homes available in the private rented sector and contribute towards our goal of ensuring that everyone within Scotland has a great place to live."
Shares in Sigma Capital were flat in London on Wednesday at 102.00 pence each. Springfield Properties was trading 3.5% higher at 113.30p.
By Paul McGowan; [email protected]
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