A new partnership between Keepmoat and Sigma Capital Group will deliver 5,000 rental properties through a £800m investment.
Keepmoat, a housebuilder and regeneration specialist, and investor Sigma say that the new joint venture will provide around 5,000 homes for the private rental sector by 2021.
The project, which will mark Keepmoat’s first private rental sector venture, will feature a range of two, three and four-bedroom properties in locations across the North East, Yorkshire and the East Midlands, with construction expected to begin this summer.
New Partnership to Deliver 5,000 Rental Properties
The partnership will primarily deliver homes for rent on land owned and to be acquired by Keepmoat, while Sigma will undertake lettings and investment management.
The Chief Executive at Keepmoat, Dave Sheridan, says: “This is a significant milestone for our business, and we are proud to be working alongside Sigma to scale up their private rental sector 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.”
Last year, Keepmoat built more than 4,000 homes, and the firm aims to increase their housing growth by 25% year-on-year moving forwards.
Sheridan adds: “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 growth and respond to the market need.”1
The partnership with Keepmoat will significantly increase Sigma’s construction resource, access to land and geographic reach, as the company seeks to deliver high quality family homes to rent in large-scale across England. The new relationship complements Sigma’s long-term agreements with Countryside Properties Plc, as well as its existing private rental sector platform.
The Chief Executive of Sigma, Graham Barnet, comments: “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 private rental sector and regeneration portfolio.
“We are looking to significantly expand our business in the private rental sector, and this partnership will accelerate our strategy for growth in this market.”1
1 http://www.sigmacapital.co.uk/news/article/2016/06/03/major-new-strategic-partnershi/176