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UK: Public investment fund Northern LGPS and pension service provider Local Pensions Partnership Investments (LPPI) have completed the £1.1 billion acquisition of PRS Holdco, the operating arm of PRS REIT, comprising 5,478 SFR homes.
The transaction includes 71 sites across England, Scotland and Wales.
Build-to-rent provider Sigma Capital has agreed terms to support the transfer of the portfolio to its new owners, which is expected to take place over 12 months. Sigma created the PRS REIT in 2017.
Northern LGPS and LPPI plans to invest an additional £1 billion to expand the portfolio by more than 15,000 homes over the next 10 years. The joint venture will also establish a property management platform to directly manage the portfolio.
Louise Warden, investment director at LPPI, said: “This joint venture, delivered through our LPPI Real Estate Fund, is a great example of the positive impact pension capital can have in the communities of pension fund members, and of the power of cross-pool collaboration. By working together with Northern, we’ve been able to unlock an investment opportunity of real scale.
“The undersupply of quality rental properties in the UK is well documented. We want to help tackle this issue while accessing an asset class that offers our members exactly what they need. Our plans to scale the portfolio significantly underline our confidence in this strategy and commitment to long-term investment in UK housing,” she added.
Eleanor Wills, chair of the Northern LGPS, said: “This partnership demonstrates what we can achieve when pension funds work together at scale. I am proud that Northern LGPS is supporting the government’s plan to provide much-needed affordable homes across the country for hardworking families, including right here in the North of England, while securing the pensions of our members.”
Graham Barnet, founder and chief executive of Sigma Capital Group, said: “This is a landmark transaction in the build-to rent sector. Having launched the model responsible for the delivery and management of this nationwide portfolio, we’ve now agreed terms to ensure the portfolio’s smooth transfer to its new owners, Northern LGPS and LPPI, from The PRS REIT plc.
“We continue to grow Sigma’s own balance sheet portfolio. Over the course of 2025 to date, we have increased our own BTR portfolio to around 3,245 completed homes from 1,532. We expect to expand this to around 4,100 rental homes by the end of 2026, with the portfolio on track to deliver c. 4,510 homes when the current delivery is completed. The estimated rental value of the c. 4,510 homes is approximately £72 million – with the homes managed under our property platform, which includes our lettings and management brand, Simple Life.”
Highlights:
- Northern LGPS and LPPI have completed a £1.1 billion acquisition of PRS REIT’s SFR portfolio, comprising 5,478 single-family rental homes across 71 sites in England, Scotland and Wales.
- Sigma Capital will support the portfolio transition, having originated PRS REIT in 2017 and agreed terms to assist with the handover and ongoing delivery.
- The joint venture plans to invest a further £1 billion over the next decade, targeting expansion by more than 15,000 additional rental homes nationwide.
- A new in-house property management platform will be established.
