The UK’s largest build-to-rent housing specialist and landlord Sigma Capital is being sold to a private equity firm for £188m.
Edinburgh-based Sigma has built more than 5,400 new rental properties – mainly single-family homes – working with partners in the building sector, investors and local authorities.
The company was quick to spot the potential of the PRS amid pressure on housing in the UK, following its creation as a technology investment business in 1996. Sigma’s successful model is based on sourcing development sites, managing the planning and construction process and overseeing lettings and property management through to completion.
City fund manager PineBridge Benson Elliot, whose portfolio includes three hotels at Disneyland Paris, has made the cash offer – subject to approval by shareholders, after Sigma announced it was looking to fund its future growth and maximise shareholder potential.
Graham Barnet, Sigma chief executive and founder, says he believes the team at PineBridge Benson Elliot, as well as its capital backing, will make a powerful combination and enable Sigma to significantly expand its activities.
He adds: “Sigma has been a pioneer in the delivery of new, single-family homes in the private rented sector, creating an unrivalled property delivery and management platform. We believe we have delivered one of the largest number of new family rental homes in the UK. We also manage the rental of thousands of homes for our partners.”
Adds Barnet: “The need for high-quality, professionally-managed rental homes remains a critical unmet need in the UK and we look forward to developing our model further.”