PRS REIT has started making investments – the closed-ended real estate investment trust, which was established to invest in new build homes in the private rented sector and was admitted to the Specialist Fund Segment of the London Stock Exchange’s Main Market on 31 May 2017, says:
Immediately following its launch and as planned, it acquired 50 completed and fully let private rented sector homes comprising two and three bedroom family homes at Mackets Lane in Halewood, from Sigma Capital Group for a purchase price of GBP7.3 million. In line with its strategy to focus on sites in towns and cities in England outside London, which also follow the main rail and road infrastructure, the site is well situated for commuting into Liverpool City Centre and is also adjacent to a local primary school and nursery. The 50 units generate an annualised rent of approximately GBP0.45 million.
In addition, PRS REIT entered into its first design and build contract with Countryside Properties plc for a development of private rented sector homes in Middleton, Rochdale with an estimated gross development cost of approximately GBP16.0 million. The site is four miles northeast of Manchester City Centre, and is well located for the M60 and wider motorway network. The first tenants are expected to take occupation in January 2018.
A further five design and build contracts, which together provide approximately 365 PRS units and have a combined gross development cost of approximately GBP53.0 million, are expected to be signed over the coming months. These sites are located in the North West and South Yorkshire.
Through the Investment Adviser, Sigma PRS Management Limited, a subsidiary of Sigma, the fund is assessing potential new sites and this is progressing very well, with additional opportunities now under review alongside the existing planned roll-out.
Steve Smith, Non-executive Chairman, commented: “We are very pleased with the PRS REIT’s strong start since its launch at the end of May, with the PRS REIT having hit its early milestones. The Company remains very well positioned for continuing progress, with further design and build contracts in preparation and additional opportunities under review alongside the existing planned roll-out. Demand for new family rental homes, our core target market, remains buoyant and we expect our high quality, professionally managed new homes to help fulfil the growing shortage of rental housing stock.”
PRSR : PRS REIT has started making investments