PRS REIT in £200m debt talks for expansion

By Paul Norman - Wednesday, January 10, 2018 9:49

PRS REIT, advised by Sigma PRS Management Limited, is in advanced discussions with debt providers to secure circa £200m of debt as it looks to build out an additional £400m of development opportunities.

In a quarter update, the REIT said the net proceeds of its £250m IPO fundraise, secured on 31 May 2017, have now been fully committed, "well ahead of schedule".

It said these will deliver:

 

  • 1,720 new rental homes in North West, Midlands and South Yorkshire, with total estimated rental value of £15.7m pa once fully let;
  • 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 £111.2m, with circa 795 rental homes planned.
  • This is in addition to the six sites  under construction

 

Investment Adviser, Sigma PRS Management Limited is in advanced discussions with debt providers to secure circa £200m of debt. The facility will be used to deliver an additional circa 1,380 new rental homes, on sites already identified.

In excess of £450m of additional new development opportunities have been identified by Sigma over and above those previously reported.

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.

The PRS REIT chairman Steve Smith said: “We are pleased to report that The PRS REIT continues to make strong progress. The net proceeds of our £250m 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.”

pnorman@costar.co.uk

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