SIGMA Capital has announced plans for the first phase of the £25 million portfolio of homes it intends to develop in England for private rental.
The Edinburgh-based firm, which began life as a technology investor but now focuses on property and urban regeneration, said it expects to complete a £5.8m development of 49 homes in Liverpool by the end of July next year.
The company expects to build a further 176 homes by the end of next year on two sites it has identified in Greater Manchester to complete the first phase.
Chief executive Graham Barnet said the launch represented an important step in the development of the company, which has identified the private rented sector as an attractive market.
Sigma expects to be able to develop a significant source of long term income by developing homes that will help meet what Mr Barnet has described as the urgent need for new housing in the UK.
The Aim-listed firm raised £20m from investors in September to help achieve its ambition to develop a substantial number of rented homes on its own account.
The company expects to be able to secure debt finance that will enable it to build around 550 new rental homes with a total development value of in excess of £60 million by the end of 2017.
Mr Barnet noted Sigma’s portfolio will complement the ventures it has established with residential property firm Grainger and Gatehouse Bank, which it expects will develop 10,000 homes.
The company said the 49 rental homes in Liverpool will be on a single site in Liverpool and will mainly be bedroom family properties. Once fully let, the homes are expected to generate a gross annual rental income of around £420,000.
Sigma made a pre-tax loss of £400,000 on £1m turnover in the six months to 30 June.
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