PRS REIT buys two sites and agrees to buy a further three – The PRS REIT (PRSR) has announce that it has acquired a development site for the construction of 145 new family rental homes, with a gross development cost of c. £15.2m, and purchased a newly-completed Private Rented Sector (PRS) site, comprising 63 family homes for c. £10.3m.
Acquired – The development site
The development site is located in Wigan, in Greater Manchester
- It is expected to generate c. £0.95m of rental income per annum once fully let. Construction on the site is expected to be completed in the first half of 2020
- Sigma PRS Management Limited, the PRS REIT’s Investment Advisor, has sourced this investment and will manage the delivery of the new homes
- Countryside Properties is the construction partner.
Acquired – The newly completed site
The newly-completed PRS development is situated in Smethwick, near Birmingham city centre
- The site has been acquired from Sigma Capital Group
- It generates an annualised rental income of c. £0.6m per annum from a mix of 2, 3 and 4 bedroom homes
- It was independently valued by Savills
A forward contract to acquire – Harlow, Essex
In addition, the company has agreed a forward contract to acquire a development site in Harlow, Essex
- A further 94 units, with a total delivery cost of c. £27.3m
- The estimated rental value of these homes once let is c. £1.6m per annum
- Sigma PRS Management Limited will also manage the delivery
- Countryside Properties will be the construction partner
A forward contract to acquire – Nuneaton, West Midlands and Harlow, Essex
The PRS REIT has also signed forward purchase agreements with Sigma Capital to acquire two further PRS sites that are currently being developed.
- The two sites are in Nuneaton in the West Midlands and also in Harlow, Essex, and will comprise 50 and 28 units respectively
- The sites are expected to be completed in the second half of 2019
- The combined ERV is c. £1.1m per annum
Following the acquisitions
The PRS REIT is a closed-ended real estate investment trust established to invest in new-build homes in the Private Rented Sector (“PRS”). After these aquisitions and developments the company will have 30 sites, either completed or under construction, which equates to approximately c. 2,130 new family homes.
The approximate gross development cost of these sites is £331.0m and the homes have a combined ERV of c. £20.5m per annum.
PRSR : PRS REIT buys two sites and agrees to buy a further three