Keepmoat has struck an agreement with investment partner Sigma Capital Group to invest in the region of £800m in developing private rental schemes.
The housebuilder and regeneration specialist and investor Sigma said that the major new joint venture will deliver 5,000 homes for the private rented sector (PRS) by 2021.
The project, which will be Keepmoat's first PRS venture, will deliver a selection of two, three and four bedroom properties in locations across the North East, Yorkshire and the East Midlands, with construction expected to get underway this summer.
The partnership will primarily deliver homes for private rent on land owned and to be acquired by Keepmoat, while letting and investment management will be undertaken by Sigma.
Dave Sheridan (below), chief executive at Keepmoat, said: “This is a significant milestone for our business, and we are proud to be working alongside Sigma to scale-up their PRS growth ambitions.
“The partnership will deliver great quality market rented homes alongside our Keepmoat homes for sale, which will allow the pace of housing delivery on strategic sites to be increased, to deliver the Government’s aspirations and provide people across the country with much-needed housing options.
“Sigma came to us because of our national capability, our great quality product and our efficient supply chain that delivers great value for money.”
In 2015, Keepmoat built more than 4,000 homes and the firm’s aim is to increase their housing growth by 25% year-on-year moving forward.
“To deliver this target we are working closely with our supply chain – many of which are small and medium sized businesses – to help them to grow and respond to the market need,” he added.
The relationship with Keepmoat significantly increases Sigma’s construction resource, access to land and geographic reach as the company seeks to deliver high quality family homes for rental, in large scale, across the regions in England. The new partnership complements Sigma’s long term relationship with Countryside Properties plc as well as its existing PRS platform and other relationships.
Graham Barnet, chief executive of Sigma, said: “I am delighted to be working with Keepmoat to not only create more housing options and meet the growing need for alternative tenure housing in key areas across the country, but they will support us with strengthening our PRS and regeneration portfolio.
“We are looking to significantly expand our business in the PRS sector, and this partnership will accelerate our strategy for growth in this market.”
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