Thursday, November 14, 2019

Springfield Properties signs major deal with private rental specialist

From left - Michelle Motion, Sandy Adam and Innes Smith
From left - Michelle Motion, Sandy Adam and Innes Smith

Sigma, the private rented sector, residential development and urban regeneration specialist, has agreed terms for a major new Collaboration Agreement with Scottish house builder Springfield Properties plc.

The Agreement targets the delivery of hundreds of new rental homes for Sigma, focusing on five cities in Scotland – Dundee, Edinburgh, Inverness, Perth and Stirling. 

The move follows the launch of the Sigma Scottish PRS Fund (“Scottish PRS Fund”), reported on 29 April 2019, which is the first dedicated vehicle to focus on the creation of new homes for the private rental market in Scotland. As previously reported, the Scottish Government’s Building Scotland Fund is supporting the Fund, which will have an initial £43m to deploy. 

Under the terms of the Agreement, Springfield will construct family homes for Sigma’s PRS property platform, with the majority of new homes to be built in Springfield’s ‘Village’ developments. The homes will be built under fixed-cost design & build contracts, and hundreds of new home starts are being targeted over the coming years. The homes will be built on mixed-tenure sites, a model that Sigma already deploys across its existing sites in England. 

Graham Barnet, Chief Executive of Sigma, said: 

“We are delighted to announce this major partnership with Springfield, one of Scotland’s leading housebuilders. It targets the construction of hundreds of new homes for families across Dundee, Edinburgh, Inverness, Perth and Stirling, which include the key locations of Springfield’s Village sites. Once built our homes will be let under Sigma’s ‘Simple Life’ lettings brand. 

“Springfield has a well-established reputation for delivering quality homes in Scotland and this partnership brings significant benefits for both sides, especially in accelerating the rate at which mixed tenure sites can be developed. We look forward to working with Springfield as we develop the partnership and extend our model in Scotland.” 

Innes Smith, Chief Executive Officer of Springfield Properties plc, said: 

“We are proud to be chosen by Sigma as their first partner in Scotland to deliver homes for the private rented sector. Like Springfield, Sigma focuses on providing the high-quality family homes that are the heart of successful communities. This agreement stands to accelerate our delivery of homes, particularly on Village developments, and we expect it to provide a further revenue stream, alongside our existing private and affordable housing activity, with good visibility over cash flows. It will also increase the number of homes available in the private rented sector and contribute towards our goal of ensuring that everyone within Scotland has a great place to live.”

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