Residential specialist Sigma has agreed a £700 mln (€840 mln) joint venture with Shariah compliant investment bank Gatehouse Bank to support the roll-out of one of the UK’s largest portfolios of new private rented residential homes.
Residential specialist Sigma has agreed a £700 mln (€840 mln) joint venture with Shariah compliant investment bank Gatehouse Bank to support the roll-out of one of the UK’s largest portfolios of new private rented residential homes.
Sigma and Gatehouse Bank said they plan to develop an initial 2,000 of new privately-rented residential properties, with the potential to grow the portfolio to 6,600.
The initial 2,000 new rental homes have a total development cost of £200 mln and will be built on land procured and developed by Sigma.
Under the terms of the joint venture, Gatehouse will deliver the equity element of the venture and both parties are in negotiations with a number of banks for bank financing to complete the initial development phase. Once bank finance is in place, construction is expected to take place over 24 months, with the new homes being delivered in phases, the partners said.
The initial 2,000 units are being supported in particular by Sigma’s local authority partnerships with Liverpool and Salford City Councils, and 22 sites, totalling over 90 acres, have already been identified across the North West.
UK prime minister David Cameron and business secretary Vince Cable have both voiced their support of the joint venture.
The prime minister said: 'As we compete in a tough global race, Sigma’s joint venture with Gatehouse is brilliant news for the North West and for Britain, showing that we are open for business.'
