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September 23, 2020

EQT enters London residential market via £1bn JV with Sigma

EQT Real Estate and Sigma Capital have launched £1bn residential joint venture (JV) to bring 3,000 new homes to Greater London.

EQT Real Estate and Sigma Capital have launched a £1bn residential joint venture (JV) to bring 3,000 new homes to Greater London.

Under the terms of the JV, EQT and Sigma have initially committed equity of £300m and £16m respectively. Homes England, the housing agency of the UK Government, has provided an initial loan facility of £50m.

The JV has secured five sites from Countryside Properties and has agreed to purchase two further build-to-rent (BTR) sites from Sigma Capital after their completion.

The five sites are situated in the London boroughs of Ealing, Enfield and Havering. Two additional sites currently under development by Sigma are located in the boroughs of Barking and Dagenham and Havering.

Together, the two sites will feature an additional 157 homes and are expected to be completed during the first half of 2021. The JV’s assets are scheduled to be delivered over a period of at least five years.

The JV will invest in buildings with better sustainability credentials and promote sustainable living practices within the apartments.

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The schemes will include cycle storage and will be situated near green outdoor areas.

EQT Partners director and EQT Real Estate head of UK Peter Shacalis said: “EQT Real Estate is thrilled to be entering the London residential market, one with a severe supply shortage of professionally managed, high-quality, good value homes to rent, with Sigma Capital.

“In addition to the initial seven schemes, we are currently evaluating a growing pipeline of projects in Greater London to build a large scale, resilient and downside-protected institutional BTR portfolio with robust and diversified rental income.”

In October 2019, Sigma expanded its build-to-rent activities and ‘Simple Life’ rental brand into London, with the purchase of two development sites in Havering and Barking.

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