PRS REIT buys four more development sites – PRS REIT signed contracts over four additional private rental sector development sites in January. Three of the sites are ones which PRS will develop in conjunction with partners and the remaining site will be bought once it is fully-completed. The four sites are expected to deliver approximately 310 new family homes and yield GBP3.7m per annum in rental income once developed and let. The gross cost of developing these sites is approximately GBP62m.
Within PRS REIT’s portfolio, the total number of sites either completed or contracted now stands at 47, approximating to 3,882 new homes, once these sites are fully developed. The total gross development cost of these 47 sites is approximately GBP591m, and the total rental income is forecast to be GBP36.7m a year once completed and let.
More news in March
In a separate announcement issued today, the company has declared an interim quarterly dividend of 1p per share (relating to the quarter to 31 December 2018) and reports that its interim results for the period to 31 December 2018 are expected to be published on 12 March 2019, at which point a further update on trading will be provided.
The three new development sites
Of the three development sites under contract, one has been acquired and construction is underway. This site is in Salford, Greater Manchester. The other two sites are under contract to be acquired once planning approval processes are completed, which is expected during the first half of 2019. These sites are in Chester and Houghton Regis in Bedfordshire.
These three sites have a combined gross development cost of about GBP51.5m and are expected to deliver approximately 272 additional new homes and provide an estimated rental income of GBP3.1m per annum. The development will be managed by the Investment Adviser, Sigma PRS Management Limited.
The completed development site
The fourth site has been bought under a contractual arrangement with PRS REIT’s investment adviser and toitle will transfer to PRS REIT once it has been completed and fully let. This is anticipated to be in the first quarter of the calendar year 2020. The site is in Bury St Edmunds and will comprise 38 new homes, with an expected rental income of GBP0.6m a year.
PRSR : PRS REIT buys four more development sites
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