TIDMPRSR TIDMSGM
RNS Number : 4119B
PRS REIT PLC (The)
10 January 2018
10 January 2018
PRSR.L
The PRS REIT plc
(the "Company" or the "PRS REIT")
Quarterly Update to 31 December 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 an update for the three
months to 31 December 2017.
KEY POINTS
-- Net proceeds of GBP250m IPO fundraise, secured on 31 May
2017, have now been fully committed, well ahead of schedule, and
will deliver:
- c.1,720 new rental homes in North West, Midlands and South
Yorkshire, with total estimated rental value of GBP15.7m p.a. once
fully let.
o 264 of these homes have been completed and let to date
-- In the quarter under review, the Initial Development
Portfolio acquired, commenced or secured 10 new sites for a total
cost of GBP111.2m; c.795 new rental homes planned
- this is in addition to the existing six sites currently under construction
-- Investment Adviser, Sigma PRS Management Limited ("Sigma"),
is in advanced discussions with debt providers to secure c. GBP200m
of debt:
- debt facility will be used to deliver an additional c.1,380
new rental homes, on sites already identified
-- Prospects remain very positive:
- in excess of GBP450m of additional new development
opportunities have been identified by Sigma over and above those
previously reported, reflecting Sigma's broadening
relationships
-- A further announcement confirming the Company's Net Asset
Value as at 31 December 2017 and declaring its maiden dividend will
be published at the end of January
CONTINUING STRONG PROGRESS
The PRS REIT continued to make strong progress in the three
months to 31 December 2017 and the Board is pleased to confirm that
the net proceeds of the GBP250m fundraising at IPO on 31 May 2017
are now fully committed. This is well ahead of schedule.
The PRS assets which have been acquired, forward-purchased,
secured or which are currently under construction total c. 1,720
high quality, rental homes. When fully let, these assets are
expected to generate an Estimated Rental Value ("ERV") of GBP15.7m
per annum. Of these, 264 homes have been completed and let to date,
generating revenue of GBP2.4m on an annualised basis. The new homes
are designed for families and are located over 24 sites close to
good schools across sites in the North West, the Midlands and South
Yorkshire.
These assets and the additional new sites secured in the period,
make up the majority of the 'First Acquisition Portfolio' and the
'Initial Development Portfolio' referred to in the Company's
prospectus dated 4 May 2017. The remaining four PRS sites under
construction in the First Acquisition Portfolio are expected to be
completed in the second half of 2018 and take the number of sites
in this portfolio to eight in total. In the quarter under review,
the Initial Development Portfolio acquired, commenced or secured 10
additional new sites, for a total cost of GBP111.2m. Approximately
795 new homes will be built on these sites, with the delivery
timetable currently ahead of schedule. These new sites supplement
the existing six sites currently under construction.
The PRS REIT's Investment Advisor, Sigma, is in advanced
discussions with major lenders for GBP200m of debt finance. A
further update concerning this will be made in due course. The debt
facility will be used to deliver a further c.1,380 PRS homes across
sites Sigma has already identified.
The PRS REIT notes that Sigma Capital Group plc (of which Sigma
is a subsidiary) continues to expand its geographic reach,
construction resource and land access. In particular, Sigma Capital
Group plc has plans underway with its key partner, Countryside
Properties ("Countryside"), to significantly increase the number of
completed PRS units in 2018 and has also entered into a new
Framework Agreement with Keepmoat Homes for increased housing
delivery in South Yorkshire and East Midlands. This is in addition
to the existing and increasing development activity with the Places
& Communities Division of ENGIE (formerly part of the Keepmoat
Group) in Sheffield and South Yorkshire. Sigma Capital Group plc's
relationship with the Homes and Communities Agency ("HCA"), remains
highly productive, with both sides committed to the common goal of
accelerating new housing delivery in England.
The Company looks forward to announcing its Net Asset Value as
at 31 December 2017, and maiden dividend in a separate
announcement, expected at the end of January 2018.
Steve Smith, Chairman, commented:
"We are pleased to report that The PRS REIT continues to make
strong progress. The net proceeds of our GBP250m fundraise at IPO
at the end of May 2017, are now fully committed and, once
construction is complete, will deliver approximately 1,720 new
family rental homes across sites in the North West, the Midlands
and South Yorkshire.
"We are focused on creating portfolios of high quality homes,
mainly catering for middle-income families, and are targeting sites
near good schools. There is a dearth of rental housing for
families, particularly professionally managed properties, and we
are seeing strong demand. What is also important is that our
attractive, family-inspired housing helps to foster thriving
communities.
"Growth prospects remain very positive, with additional
significant funding and development opportunities opening up. We
look forward to publishing a further announcement regarding the
Company's mid-year NAV and maiden dividend at the end of
January."
For further information, please contact:
The PRS REIT plc Tel: +44 (0)20 3178
Steve Smith, Non-executive 6378
Chairman
Sigma PRS Management Limited Tel: +44 (0)333 999
Graham Barnet 9926
Graeme Hogg
N+1 Singer Tel: +44 (0)20 7496
James Maxwell, Liz Yong, 3000
Michael Taylor
Stifel Tel: +44 (0)20 7710
Mark Young, Neil Winward, 7600
Tunga Chigovanyika
KTZ Communications Tel: +44 (0)20 3178
Katie Tzouliadis, Irene Bermont-Penn, 6378
Emma Pearson
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
www.sigmacapital.co.uk
Sigma Capital Group plc 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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