The partnership, which signifies Keepmoat’s first foray into the build-to-let market, will deliver properties in the North East, Yorkshire and the East Midlands with a potential investment value of £800 million by 2021. Construction on the first site is due to commence in summer 2016.
Dave Sheridan, Chief Executive at Keepmoat, said, “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. There is an inherent need for more housing across the country, and we are looking to tackle the issue head on.
“In 2015 we built over 4,000 homes and our aim is to increase our housing growth by 25% year-on-year going forwards. 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.”
Sigma will manage investment and lettings while Keepmoat will procure the land and take the lead on the design, planning and building processes. Graham Barnet, Chief Executive of Sigma, said, “In line with Sigma’s strategy, this partnership will enable us to expand into other parts of the UK, where currently we do not have coverage. It also complements our existing partnership with Countryside Properties by significantly increasing our construction resources and providing further access to land assets in geographies not served by our existing partners. This additional resource will help realise our ambitions to deliver PRS housing across all of the key economic regions in the UK.”