LONDON (ShareCast) - (Sharecast News) - Closed-ended real estate investment trust, the PRS REIT, has acquired a development site for the construction of 145 new family rental homes with a gross development cost of £15.2m, it announced on Thursday, and purchased a newly-completed private rented sector site, comprising 63 family homes, for £10.3m.
The London-listed specialist fund said the development site was located in Wigan, in Greater Manchester, and was expected to generate around £0.95m of rental income per annum once fully let.

Construction on the site was expected to be completed in the first half of 2020.

Sigma PRS Management, the PRS REIT's investment advisor, had sourced the investment and would manage the delivery of the new homes, with Countryside Properties designated as the construction partner.

"The newly-completed private rented sector development is situated in Smethwick, near Birmingham city centre, and has been acquired from Sigma Capital Group," the board said in its statement.

"It generates an annualised rental income of £0.6m per annum from a mix of two, three and four bedroom homes.

"It was independently valued by Savills."

In addition, the PRS REIT said it had agreed a forward contract to acquire a development site in Harlow, Essex for a further 94 units, with a total delivery cost of £27.3m.

The estimated rental value of those homes once let was £1.6m per annum.

As in the other transaction, Sigma PRS Management would manage the delivery, with Countryside Properties as construction partner.

"The PRS REIT has also signed forward purchase agreements with Sigma Capital to acquire two further PRS sites that are currently being developed," the board added.

"The two sites, in Nuneaton in the West Midlands, and Harlow, Essex, will comprise 50 and 28 units respectively, and are expected to be completed in the second half of 2019.

"The combined estimated rental value is £1.1m per annum."

Following the acquisitions, the PRS REIT has 30 sites, either completed or under construction, equating to around 2,130 new family homes.

The gross development cost of those sites was £331.0m, and the homes had a combined estimated rental value of £20.5m per annum.

"The company expects to publish its audited results for its maiden financial period, covering the 13 months to 30 June, on 10 October.

"At the same time, it will provide its first quarterly update for the current financial year."

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