Member Article

£100 million for Sigma to build 927 new homes in Liverpool and Manchester

Sigma, the residential and urban regeneration specialist, announced that its private rented sector joint venture with Gatehouse Bank plc is commencing this week the construction of an initial phase of 927 new rental homes in Liverpool and Manchester with a total development cost of approximately £100 million.

This follows the agreement of up to approximately £67 million of bank financing from Barclays Bank plc which supplements equity of approximately £47 million from Gatehouse.

The new homes will be built on land procured and developed by Sigma through its existing local authority partnerships with Liverpool City Council (Regeneration Liverpool) and Salford City Council (Higher Broughton Partnership) and its housebuilding partner, Countryside Properties (UK) Ltd.

The 927 new homes will comprise a mix of high quality family homes and apartments and will be constructed across 14 sites in the North West - 10 in Greater Manchester and four in the Liverpool area.

The new homes will be built by Countryside Properties (UK) Ltd and construction is scheduled to be completed in approximately two years.

Direct Lettings Limited (part of the Shepherd Direct Group), with whom Sigma has a well-established association, will manage all lettings.

Sigma will earn an initial upfront fee on commencement of construction and thereafter a management fee paid quarterly over the duration of the delivery period.

Sigma is making an equity investment of up to £2 million in the project alongside Gatehouse depending on final construction costs.

Chief executive of Sigma, Graham Barnet commented, “This is a significant moment for Sigma, which brings to fruition the work we have done with our local authority partners, Gatehouse Bank, Countryside and Shepherd Direct to establish our Private Rented Sector model.

“I would like to express our thanks to all our partners for their support.”

Minister of State for Universities, Science and Cities, The Rt Hon Greg Clark MP said, “This is a sure sign of investment flowing into cities in the north of England, building much needed housing through this growing form of tenure and delivering new construction which contributes to the local economy, creates jobs and delivers more homes for hardworking people.

This was posted in Bdaily's Members' News section by Sophia Taha .