UK: Sigma Capital has launched a £1 billion-plus JV with Swedish investment manager EQT Real Estate to development BTR units in and around London.
The JV is planning to build 3,000 units, with support from Homes England, the housing agency of the UK Government.
EQT Real Estate, the real estate platform of global investment firm EQT, and Sigma have initially committed £300 million and £16 million respectively to the JV. Homes England will provide an initial loan facility of £50 million to assist with the delivery of the initial acquisitions.
The partnership will target BTR apartment blocks and houses in Greater London, predominantly located in transport Zones 3 to 6, over a period of at least five years. They will be let at market-rate rents under Sigma’s Simple Life London brand.
Graham Barnet, chief executive of Sigma Capital Group, said: “We look forward to delivering thousands of high-quality, affordable new rental homes across the Capital with our partners at EQT Real Estate, and providing London renters with a higher standard of customer care.”
Peter Shacalis, director at EQT Partners and Head of UK, EQT Real Estate, added: “In addition to the initial seven schemes, we are currently evaluating a growing pipeline of projects in Greater London to build a large scale, resilient and downside-protected institutional BTR portfolio with robust and diversified rental income.”
The JV launched with the acquisition of five sites from housebuilder Countryside Properties. The sites include locations in Ealing, Enfield and Havering. Two further sites under development by Sigma in Barking and Havering, will be acquired by the JV on completion.
Housing minister Christopher Pincher said: “These 3,000 new homes, backed by £50 million from our housing accelerator Homes England, will help us deliver for families across Greater London.”
