Grainger to build on Sigma partnership
Newcastle-headquartered property company Grainger has signed an agreement with Sigma Capital Group which could lead to the company creating a large-scale portfolio across the "key cities" of England outside London.
The deal grants Grainger the exclusive option for an initial four-year term to acquire development opportunities of 100 units or more sourced by Sigma.
Grainger will appraise each development opportunity individually and, as well as sourcing the opportunities, Sigma is expected to act as development manager on the majority of projects and will earn a profit share on each one.
Andrew Cunningham, chief executive of Grainger, said: "This agreement leverages both Sigma's excellent relationships with local authorities and housebuilding partners across the UK and Grainger's proven track record in managing residential property, whilst providing an innovative new avenue for investment."
Graham Barnet, chief executive of Sigma, added: "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."
A number of sites have already been identified by the two.