Plus   Neg

Sigma Capital Launches JV With EQT Real Estate; Stock Up

Shares of Sigma Capital Group plc (SGM.L) were gaining around 16 percent in the morning trade in London after the residential development and urban regeneration specialist launched a joint venture with EQT Real Estate, part of U.S. investment organization EQT Corp. (EQT).

EQT Real Estate and Sigma have initially committed equity of 300 million pounds and 16 million pounds, respectively, to the JV.

In a statement, EQT said the JV will focus on the creation of new-build, high-quality well-located BTR residential apartment blocks and houses in more affordable parts of Greater London and its commuter towns.

The JV is expected to have an initial capacity to establish an investment portfolio of approximately 3,000 homes with a total value in excess of 1 billion pounds.

The homes will be predominantly located in transport Zones 3-6 and in close proximity to transport links, including train access to central London.

EQT noted that the completed homes will be let at market-rate rents under Sigma's 'Simple LifeLondon' brand.

The JV has secured five projects with an aggregate of 361 homes from Countryside Properties plc.

The JV's assets are expected to be delivered over a period of at least five years in order to create a stabilized portfolio of diversified rental income.

UK Housing Minister Rt Hon Christopher Pincher MP 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."

In London, Sigma Capital shares were trading at 114 pence, up 16.3 percent.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
NASA's Osiris-Rex robotic spacecraft briefly touched down on near-Earth asteroid Bennu's surface on Tuesday to collect rock and dust samples that will be brought back to Earth in 2023. Bennu is currently more than 200 million miles, or 321 million kilometres, from Earth. Osiris-Rex launched from Cape Canaveral Air Force Station in Florida in September 2016. Amazon said Wednesday that free one-hour grocery pickup is now available to prime members at all U.S. Whole Foods Market locations. Previously, the prime members could pick up Whole Foods orders only at select stores. J.C. Penney said it is near to exiting Chapter 11 ahead of the busy December 2020 holiday season. The beleaguered retailer filed a draft asset purchase agreement towards finalization of the acquisition by Brookfield Asset Management, Inc. and Simon Property Group, Inc. They are expected to buy substantially all of J.C. Penney's retail and operating assets in a combination of cash and debt.
Follow RTT