TIDMPRSR TIDMSGM
RNS Number : 1635S
PRS REIT PLC (The)
29 September 2017
29 September 2017
PRSR.L
The PRS REIT plc
(the "Company" or the "PRS REIT")
Quarterly Update to 29 September 2017
The PRS REIT plc, the closed-ended real estate investment trust
established to invest in new build homes in the Private Rented
Sector ("PRS"), is pleased to provide its second quarterly update,
for the period to 29 September 2017, following its admission to the
London Stock Exchange's Main Market on 31 May 2017.
KEY POINTS
-- Significant progress since IPO on 31 May - with the total
value of PRS assets acquired, forward- purchased or under
construction now in excess of GBP134.6m. This equates to 926 new
rental homes with an Estimated Rental Value ("ERV") of GBP8.4m
p.a.
-- The equity capital raised at admission, c. GBP250m, is
expected to be fully committed in H1 2018
-- First Acquisition Portfolio - the portfolio of completed PRS
sites the Company agreed to acquire from Sigma Capital Group plc
("Sigma") on a forward-purchased basis - is progressing well:
o Three newly built PRS sites were acquired, or are under
contract for acquisition in September, from Sigma for a total
consideration of GBP24.4m, taking the total number of acquired PRS
sites to four;
o Together, the four sites comprise 223 new, high quality rental
homes and will generate a gross rental income of GBP1.95m p.a.;
o The sites predominantly comprise a mix of 2, 3, & 4
bedroom family homes and are
located across the North West and South Yorkshire;
o A further four sites in the North West and Midlands are under
construction by Sigma for the Company. These will deliver 273 new
rental homes, with the first homes scheduled for handover in
October 2017.
-- The Initial Development Portfolio - the PRS development sites
to be acquired and developed - is gaining momentum:
o Five new Design & Build ("D&B") contracts were agreed
or entered into in the period with Countryside Properties and
Keepmoat Homes and Keepmoat Regeneration, bringing the total to six
sites under construction or moving onto site;
o These six contracts will deliver 430 new 2, 3, & 4 bedroom
rental homes;
o The sites are located in the North West and South
Yorkshire.
-- Investment adviser, Sigma PRS Management Limited, a
subsidiary of Sigma, is in discussions to agree debt facilities
-- Additional development and acquisition opportunities, over
and above those previously identified, are currently under
review
Steve Smith, Chairman, commented:
"The PRS REIT has made excellent progress over the four months
since its IPO at the end of May, with the total value of assets
acquired, forward-purchased or under construction now standing at
in excess of GBP134.6m. This equates to 926 high quality, new
rental homes for the private rented sector, generating an estimated
rental of GBP8.4m per annum.
"Given this excellent progress and our continuing momentum, the
PRS REIT is well underway to fully deploying all the funds raised
at flotation, some GBP250m, in H1 2018.
"Our Investment Adviser, Sigma PRS Management Limited, is
bringing forward interesting additional opportunities above those
already identified at IPO, and we remain confident of our progress
as we build out our investment in the Private Rented Sector across
the major conurbations in England."
For further information, please contact:
The PRS REIT plc Tel: +44 (0)20
3178 6378
Steve Smith, Non-executive Chairman
Sigma PRS Management Limited
Graham Barnet Graeme Hogg Tel: +44 (0)333
999 9926
N+1 Singer
James Maxwell, Liz Yong, Michael Tel: +44 (0)20
Taylor 7496 3000
Stifel Tel: +44 (0)20
7710 7600
Mark Young, Neil Winward, Tunga
Chigovanyika
KTZ Communications Tel: +44 (0)20
3178 6378
Katie Tzouliadis, Irene Bermont-Penn,
Emma Pearson
OVERVIEW AND OUTLOOK
The PRS REIT has made significant progress since its IPO on 31
May 2017, with the total value of PRS assets acquired,
forward-purchased or under construction already in excess of
GBP134.6m. This amounts to 926 high quality, new rental homes
which, when complete and fully let, will generated an Estimated
Rental Value ("ERV") of GBP8.4m per annum.
Over the first four months since its launch, as planned, the PRS
REIT has agreed contracts to acquire 223 new rentals homes from
Sigma Capital Group plc ("Sigma"), located over four sites in the
North West and South Yorkshire for its First Acquisition Portfolio.
A further four sites are under contract for acquisition from Sigma.
The Company's Initial Development Portfolio is also progressing
very well, with now six Design & Build contracts agreed or
signed. These will deliver an additional 430 new rental homes in
sites in the North West and South Yorkshire.
The Company expects that all the capital raised at IPO,
approximately GBP250m, will be fully committed during H1 2018. In
addition, Sigma is currently in discussions with debt providers for
additional capital, in accordance with the Prospectus.
The table below summarises the current composition and ERV of
the Company's First Acquisition Portfolio and Initial Development
Portfolio.
Detail of each is included below the table.
First Acquisition Portfolio Purchase PRS units ERV
Price
------------------------------ ---------- ---------- ---------
Four completed sites GBP31.7m 223 GBP1.95m
have been/are being acquired
from Sigma
Four further sites under GBP41.3m 273 GBP2.5m
contract to be acquired
from Sigma on completion;
---------- ---------- ---------
GBP73.0m 496 GBP4.45m
---------- ---------- ---------
The Initial Development Purchase PRS units ERV
Portfolio Price
------------------------------ ---------- ---------- ---------
Six development sites GBP61.6m 430 GBP3.95m
underway/agreed by the
PRS REIT
------------------------------ ---------- ---------- ---------
Combined Total of Both GBP134.6m 926 GBP8.4m
Portfolios
------------------------------ ---------- ---------- ---------
THE FIRST ACQUISITION PORTFOLIO
Sites funded and delivered by Sigma - First Acquisition
Portfolio
The following sites comprising 223 new homes and forming part of
the First Acquisition Portfolio are being/ have been acquired into
the REIT:
Site Units Accommodation Purchase/D&B Gross Purchase
Type Contracts Annual Price
Agreed Rental
------------------ ------ -------------- ------------- ----------- ----------
Woodbine 50 2 & 3 bedroom Jun- 17 GBP452,000 GBP7.34m
Road / Mackets, houses
Halewood
Coral Mill, 45 2, 3 & 4 Sep-17 GBP595,200 GBP9.77m
Rochdale bedroom
houses
24 2-bedroom
apartments
Durban Mill, 80 2, 3 & 4 Sep-17 GBP695,700 GBP11.46m
Oldham bedroom
houses
Park Grange 24 2 bedroom Sep-17 GBP206,600 GBP3.17m
House (Norfolk apartments
Park), Sheffield
------------------ ------ -------------- ------------- ----------- ----------
Total: 223 GBP1.95m GBP31.74m
------------------ ------ -------------- ------------- ----------- ----------
The sites below will provide a further 273 new homes and will be
acquired by the REIT on or around the completion dates noted
below:
Site Units Accommodation Purchase/D&B Estimated Estimated
Type Contracts Completion Purchase
Agreed Dates Price
------------------ ------ -------------- ------------- ------------ ----------
Galton Lock 63 2, 3 & 4 Dec-16 Q2-18 GBP9.73m
(Mafeking bedroom
Road), Smethwick houses
Hamilton 59 2, 3 & 4 Dec-16 Q1-18 GBP8.72m
Square (Howe bedroom
Bridge Mill), houses
Atherton
Silkin Park, 78 2, 3 & 4 Mar-17 Q4-18 GBP11.84m
Telford bedroom
houses
Our Lady's, 73 2, 3 & 4 Jun-17 Q2-18 GBP10.99m
Salford bedroom
homes
------------------ ------ -------------- ------------- ------------ ----------
Total 273 GBP41.28m
------------------ ------ -------------- ------------- ------------ ----------
THE INITIAL DEVELOPMENT PORTFOLIO
Sites funded and developed by the REIT - managed by Sigma PRS
Management Limited
The sites below form part of the Initial Development Portfolio
of the REIT.
The Baytree Lane Design & Build contract was entered into at
the REIT's admission to the Main Market, with Sigma negotiating and
agreeing a further five D&B contracts on behalf of the REIT
during the period. These contracts together will deliver 430 PRS
units.
Site Units Accommodation Purchase/D&B Estimated Approximate
Type Contracts Completion Delivery
Agreed Dates Cost
----------------- ------ -------------- ------------- ------------ ------------
Baytree 110 2, 3 & Jun-17 Q3-18 GBP16.40m
Lane, Middleton 4 bedroom
homes
Tintern 88 2, 3 & Jul-17 Q4-18 GBP12.04m
Avenue, 4 bedroom
Middleton houses
East Hill, 58 3 & 4 bedroom Sep-17 Q1-19 GBP8.85m
Sheffield houses
Manor Top 78 3 & 4 bedroom Sep-17 Q1-19 GBP10.80m
Phase One, houses
Sheffield
Woodford 14 2, 3 & Aug-17 Q2-18 GBP7.80m
Lodge Phase 4 bedroom
1, Winsford houses
Woodford 40 2, 3 & Sep-17 Q4-18
Lodge Phase 4 bedroom
2, Winsford houses
Tower Hill 42 3 & 4 bedroom Sep-17 Q4-18 GBP5.70m
Phase 2, houses
Kirkby
----------------- ------ -------------- ------------- ------------ ------------
Total 430 GBP61.59m
----------------- ------ -------------- ------------- ------------ ------------
ENDS
NOTES TO EDITORS
About The PRS REIT plc
(www.theprsreit.com)
The PRS REIT is a closed-ended real estate investment trust
established to invest in the Private Rented Sector. The Company
raised GBP250 million gross equity capital in an initial public
offering via a Placing Offer for Subscription and Intermediaries
Offer. The UK Government's Homes and Communities Agency supported
the launch of the PRS REIT with a direct investment of c. GBP25
million. The proceeds of the fundraising will be invested in
completed PRS sites and PRS development sites to achieve the
Company's objective of providing shareholders with an attractive
level of income together with the potential for capital and income
growth.
About Sigma PRS Management Limited
Sigma PRS Management Limited is a wholly owned subsidiary of AIM
quoted Sigma Capital Group plc and is the Company's Investment
Adviser. It will source investments and manage the assets of The
PRS REIT plc and advise the Company on a day-to-day basis in
accordance with the Company's Investment Policy.
About Sigma Capital Group plc ("Sigma")
www.sigmacapital.co.uk
Sigma is a private rented sector, residential development, and
urban regeneration specialist, with offices in Edinburgh,
Manchester and London. Sigma's principal focus is on the delivery
of large scale housing schemes for the private rented sector. It
has a well-established track record in assisting with
property-related regeneration projects in the public sector, acting
as a bridge between the public and private sectors. Its subsidiary,
Sigma PRS Management Limited, has been appointed as Investment
Adviser to The PRS REIT plc.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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