Capital’s Sigma stays on track

Sigma Capital Group, the Edinburgh-based residential development and urban regeneration specialist, is confident that its full-year results will hit market expectations after a “significant uplift” in the second half.

In a trading update to investors, Sigma said delivery had been stronger in the second half of the year than in the first, and in particular during the final quarter.

This has resulted in a jump in development fees and development profits in addition to an increase in asset management income following a full year of investment adviser fees from The PRS REIT’S £250 million equity raise in February 2018. The PRS REIT is a real estate investment trust, which is managed by Sigma.

More than 840 new rental homes were delivered via Sigma’s private rented sector (PRS) property platform for the REIT in 2019, with a combined estimated rental value of £7.9m per annum.

Delivery included the sale by Sigma of two fully completed and let sites to the trust, after independent valuations, for a total of £20.9m.

As of the end of December, 3,328 homes were under development for the REIT, with an estimated rental value of £32.7m. These are located across 42 sites that, including the homes already completed, have a combined gross development cost of £584m.

The firm added: “The scope of Sigma’s build-to-rent activities is growing, with a collaboration agreement covering Scotland and the acquisition of the company’s first sites in London. The board looks forward to providing a further update on these developments in due course.”

Sigma’s full-year results are expected to be announced in April.

Separately, The PRS REIT said an interim dividend payment of 1p in respect of the first quarter was paid on 29 November. It continues to target a total dividend of 5p for the current financial year.