DLA Piper has advised Sigma Capital Group Plc, the residential and urban regeneration specialist, on its strategic partnership with the UK's largest listed residential property owner and manager, Grainger, creating a vast Private Rental Sector (“PRS”) portfolio across a number of key cities outside London.
This is the largest UK PRS deal aimed at the development and letting of upwards of 9,000 private rented units over the next five-six years with a envisaged total investment of over £1bn.
DLA Piper advised Sigma on both the joint venture (JV) and development management agreement as well as the tax structuring of the JV. The team was led by Restructuring partner Graeme Henry, alongside partner Jonathan Richards. Partner Jonathan Northey and senior associate Peter Lowe from Real Estate and Tax partner Neville Wright and senior associate Matt Davies also advised on this deal.
Graeme Henry, partner at DLA Piper stated: "This JV showcases the our expertise in the PRS sector."
Graham Barnet, Chief Executive of Sigma, commented: "The creation of this strategic partnership with Grainger is tremendously exciting, marking another milestone development for Sigma as it positions itself as a major presence in the delivery of high quality new homes for the rental sector.
"The partnership enables us to accelerate the delivery of large scale PRS schemes throughout the UK, particularly in England's major cities outside London. This acceleration of our activities will help further expand the breadth of opportunity with our partners as we deliver on this. The combination of Grainger's funding ability and asset and property management expertise, and our local authority relationships and development management skills, brings gains to both sides - as well as to our associated partners.
This is the second PRS scheme that the firm has advised on this month, having recently advised Mace Real Estate on a joint venture agreement with an affiliate of Realstar Group, for the delivery of a 45 storey tower at Newington Butts in Elephant and Castle.
