(RTTNews) - Shares of Sigma Capital Group plc (SGM.L) were gaining around 16 percent in the morning trade in London after the residential development and urban regeneration specialist launched a joint venture with EQT Real Estate, part of U.S. investment organization EQT Corp. (EQT).
EQT Real Estate and Sigma have initially committed equity of 300 million pounds and 16 million pounds, respectively, to the JV.
In a statement, EQT said the JV will focus on the creation of new-build, high-quality well-located BTR residential apartment blocks and houses in more affordable parts of Greater London and its commuter towns.
The JV is expected to have an initial capacity to establish an investment portfolio of approximately 3,000 homes with a total value in excess of 1 billion pounds.
The homes will be predominantly located in transport Zones 3-6 and in close proximity to transport links, including train access to central London.
EQT noted that the completed homes will be let at market-rate rents under Sigma's 'Simple LifeLondon' brand.
The JV has secured five projects with an aggregate of 361 homes from Countryside Properties plc.
The JV's assets are expected to be delivered over a period of at least five years in order to create a stabilized portfolio of diversified rental income.
UK Housing Minister Rt Hon Christopher Pincher MP said, "These 3,000 new homes, backed by £50 million from our housing accelerator Homes England, will help us deliver for families across Greater London."
In London, Sigma Capital shares were trading at 114 pence, up 16.3 percent.
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