PRS REIT buys nine more sites – The PRS REIT has signed contracts over nine additional sites. One site is a newly-completed development of homes that has been acquired from Sigma PRS Management Limited, the investment adviser, and seven are development sites, with construction already underway at some sites. The remaining site has been bought under a forward contract with the investment adviser and will be a fully-completed development at the point at which it is acquired in full.
The nine sites are expected to deliver approximately 775 additional new family homes and provide a forecast £6.7m a year in rental income once completed and let. The gross development cost of these sites is approximately £107.7m. Following this deal, PRS REIT has 42 completed or contracted sites which will accommodate 3,575 new rental homes, once fully built. The total development cost of these sites is approximately £530m, and the new homes are expected to generate a combined rental income of £33.2m per annum once completed and let.
The completed site is in Salford, Greater Manchester, and has 73 newly-built homes, offering a mixture of two, three and four bedroom properties for the family rental market, with a total estimated rental value (“ERV”) of £700,000 a year. This site cost £11.7m.
The forward contract with Sigma PRS Management Limited is to buy a site, near Wakefield, which will have 72 new homes, and is expected to yield a rental income of £0.6m per annum.
The seven development sites are in the North-West and West Midlands – in Wolverhampton, Rochdale, Wigan, and Runcorn. Together the sites will deliver approximately 630 additional new homes. The development will be managed by the investment adviser. The sites have a combined development cost of about £87.3m and are expected to yield a rental income of £5.4m per annum.
PRSR : PRS REIT buys nine more sites