PRS REIT (THE) PLC

M&A Activity • Jan 3, 2019

National Storage Mechanism | Additional information

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RNS Number : 0148M

PRS REIT PLC (The)

03 January 2019

PRSR.L

The PRS REIT plc

(the "Company" or "PRS REIT")

Acquisition of PRS Sites

The PRS REIT, the closed-ended real estate investment trust established to invest in new-build homes for the Private Rented Sector ("PRS"), is pleased to announce that it has signed contracts over nine additional PRS sites.  One site is a newly-completed development of homes that has been acquired from Sigma PRS Management Limited, the Company's Investment Adviser, and seven are development sites, with construction already underway at some sites. The remaining site has been bought under a forward contract with the Investment Adviser and will comprise another fully-completed development at the point at which it is fully acquired.

The nine sites are expected to deliver approximately 775 additional new family homes and provide a forecast £6.7m per annum in rental income once completed and let. The gross development cost ("GDC") of these sites is approximately £107.7m. Further details are provided below.

These new sites take the total number of sites that are either completed or contracted to 42, and the total number of new rental homes to about 3,575, once fully built. The total GDC of these sites is approximately £530m, and the new homes are expected to generate a combined rental income of £33.2m per annum once completed and let.

The PRS REIT will issue its quarterly report for the three months to 31 December 2018 by mid January and will declare the interim quarterly dividend relating to this quarter at the end of January.

Completed PRS site

The completed PRS site is located in Salford, Greater Manchester, and consists of 73 newly-built homes, offering a mixture of two, three and four bedroom properties for the family rental market, with a total estimated rental value ("ERV") of £0.7m per annum. The site has been acquired for £11.7m, having been independently valued by Savills, and was purchased from Sigma PRS Management Limited, a wholly owned subsidiary of Sigma Capital Group plc.

The Company has entered into a forward contract with Sigma PRS Management Limited to acquire a further site once it has been fully completed and let. This site, near Wakefield, will comprise 72 new homes, and is expected to yield a rental income of £0.6m per annum.

Development sites

The seven development sites that have been acquired are located in the North-West and West Midlands - in Wolverhampton, Rochdale, Wigan, and Runcorn.  Together the sites will deliver approximately 630 additional new homes once construction is complete.  The development will be managed by the Investment Adviser.  The sites have a combined GDC of about £87.3m and are expected to yield a rental income of £5.4m per annum. 

For further information, please contact:

The PRS REIT plc Steve Smith, Non-executive Chairman	Tel: 020 3178 6378 (c/o KTZ Communications)
Sigma PRS Management Limited Graham Barnet Graeme Hogg	Tel: 0333 999 9926
N+1 Singer  James Maxwell, James Moat, Ben Farrow	Tel: 020 7496 3000
Stifel Mark Young, Neil Winward, Gaudi Le Roux	Tel: 020 7710 7600
G10 Capital Limited (AIFM) Gerhard Grueter, Anthony Wood, Gaia Udage	Tel: 020 3696 1302
KTZ Communications Katie Tzouliadis, Dan Mahoney	Tel: 020 3178 6378

NOTES TO EDITORS

About The PRS REIT plc

(www.theprsreit.com)

The PRS REIT is a closed-ended real estate investment trust established to invest in the Private Rented Sector and to provide shareholders with an attractive level of income together with the potential for capital and income growth.  It has raised a total of £500m (gross) through its Initial Public Offering, on 31 May 2017, and a subsequent placing in February 2018. Both fundraisings were supported by the UK Government's Homes England with direct investments.  

LEI: 21380037Q91HU97WZX58

About Sigma Capital Group plc

(www.sigmacapital.co.uk)

Sigma Capital Group plc is a private rented sector, residential development, and urban regeneration specialist, with offices in Edinburgh, Manchester and London. Sigma's principal focus is on the delivery of large scale housing schemes for the private rented sector. It has a well-established track record in assisting with property-related regeneration projects in the public sector, acting as a bridge between the public and private sectors.  Its subsidiary, Sigma PRS Management Limited, is Investment Adviser to The PRS REIT plc.

About Sigma PRS Management Limited

Sigma PRS Management Limited is a wholly-owned subsidiary of AIM-quoted Sigma Capital Group plc and is Investment Adviser to The PRS REIT plc. It sources investments and manages the assets of The PRS REIT plc and advises the Alternative Investment Fund Manager ("AIFM") and The PRS REIT plc on a day-to-day basis in accordance with The PRS REIT plc's Investment Policy. The Investment Adviser is an appointed representative (reference number: 776293) of the AIFM.

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