Expansion of Joint Venture

AIM: SGM

Sigma Capital Group plc

("Sigma")

Expansion of joint venture with Liverpool City Council

Sigma, the property and specialist asset management group, is pleased to announce that Liverpool City Council has given full cabinet approval to the significant expansion of In-Liverpool LLP, the joint venture ("Joint Venture" or "Liverpool Partnership") between Liverpool City Council and Sigma Inpartnership, Sigma's wholly owned regeneration vehicle, which re-develops surplus land assets. 

Liverpool City Council has approved the extension of the Joint Venture to encompass a further six sites across the City of Liverpool as part of the Council's wider regeneration strategy. These additional six sites include of a mix of new homes, new commercial schemes and educational institutions. This takes the number of sites in which the Joint Venture is involved to seven. It is envisaged that work on the ground on some of these projects will start during 2012.

The expansion of the Joint Venture almost doubles the potential number of housing units to 2,000 units from 1,100 and adds up to half a million square feet of new commercial, retail and leisure space. This represents a significant expansion of the opportunity for Sigma Inpartnership in Liverpool, both within housing delivery and now major commercial opportunities. Sigma Inpartnership will be working very closely with specialist partners in the house-building and commercial development fields in the delivery of these schemes.

Sigma Inpartnership, via the Joint Venture, is currently involved in the major Liverpool regeneration project known as Norris Green Village, formerly the Boot Estate, where 178 high quality homes are being built for sale and rent as part of the initial regeneration phase of the 63 acre site.

Sigma Inpartnership undertakes large scale property-related regeneration projects forming partnerships with the public sector lasting up to 20 years. The total development value of theopportunities held within its existing partnerships is now estimated at well over £2 billion.

Graham Barnet, Chief Executive of Sigma, commented,

"We are delighted that Liverpool City Council has unanimously backed the extension of our joint venture partnership, In-Liverpool LLP. The decision reflects the success of the unique relationship that is in place with In-Liverpool LLP and the skills and abilities of the Sigma team.

There are substantial regeneration opportunities across all six new sites as well as at our existing development at Norris Green Village and we look forward to assisting Liverpool City Council in bringing its regeneration plans to fruition over the coming years."

"The expansion of In-Liverpool will place us in a stronger position to drive forward regeneration in Liverpool, giving us the skills and experience we need to deliver key projects across the City. I look forward to seeing new energy and capacity injected into the joint venture, so that we can continue to work together to take forward our priority initiatives and build a better future for our City."

Liverpool City Council's Director for Regeneration and Employment, Nick Kavanagh, said,

"In-Liverpool is one of the key vehicles which is helping Liverpool deliver improved housing, better schools and major regeneration projects. Its expansion will bring massive benefits for the City, which will be felt for generations to come. I'm delighted we are building the strength and capacity of the joint venture. It reaffirms the City Council's commitment to continue to find new and innovative ways of working with the private sector to deliver real change."

About In-Liverpool LLP

In-Liverpool LLP is a limited liability partnership formed in March 2007 between Liverpool City Council and Inpartnership. It has been established to re-develop any surplus land assets at the discretion of the Council.

Land in the Liverpool Partnership site can be developed using any combination of the following three ways: by the Liverpool Partnership - Sigma Inpartnership earns a management fee and participates in a profit share; by Sigma Inpartnership - Sigma Inpartnership earns a fee and an agreed priority profit; or by the Liverpool Partnership selling a site on the open market - Sigma Inpartnership earns a percentage of the sales price achieved. At least 20 per cent. of the land must be disposed of by sale on the open market.

The Liverpool Partnership currently holds a 10-year option agreement over a 63 acre site in the Norris Green area of the City, five miles from Liverpool City centre. The Norris Green scheme has outline planning consent for the development of over 1,100 new homes on this site. The site is largely cleared and ready for development and is classified as the first phase of the regeneration programme.

About Sigma Inpartnership

Founded in 2001 and operating from offices in Manchester and Birmingham, Sigma Inpartnership was established as an investment led property-related regeneration company, specialising in the creation of long term, asset-backed partnerships with the public sector. Inpartnership has secured three partnerships, with Liverpool City Council, Solihull Metropolitan Borough Council and Salford City Council, each ranging from 10 to 20 years' duration. The partnerships hold long term option arrangements with the respective local authorities for a mix of residential, commercial, education and health opportunities. In total, the partnerships provide for the delivery of around 10,000 new homes, a significant number of new retail centres, health/medical centres, schools and mix of retail/ leisure facilities.

The total development value of the opportunities held within the three partnerships is estimated at over £2 billion. As a result of the expansion of the Liverpool Partnership, this has now substantially increased.