The multi-million scheme will support the roll-out of one of the UK’s largest portfolios of new private rented residential homes, boosting economic growth and providing much needed homes.
Prime Minister David Cameron said: “As part of our plan to help Britain succeed, we are determined to build a rebalanced economy across the country. As we compete in a tough global race, Sigma’s joint venture with Gatehouse is brilliant news for the North West and for Britain, showing that we are open for business.
“The rental market is a vital asset to this country and this new investment will help to boost local economies, create jobs and deliver more homes for hardworking people.”
Sites for the initial 2,000 privately rented homes have already been identified in Liverpool and Greater Manchester.
They will be backed by local authority partnerships with Liverpool and Salford City Councils, and 22 sites, totalling over 90 acres, have already been identified across the North West.
The joint venture also provides an opportunity for the creation of a portfolio for further 4,600 new privately rented homes in the future.
Business Secretary Vince Cable today welcomed the new £700 million inward investment deal, which will be delivered through UK with backing from strong international investors, Gatehouse Bank.
He said: “The UK’s inward investment is booming, growing by 11% last year alone. We want to be even more ambitious and make sure that any new investment is spread right across the country – not just in London and the south east.
“By ensuring each region has access to good finance opportunities, UKTI’s Regeneration Investment Organisation will help all the UK’s regions fulfil their full potential, helping to build a stronger economy and a fairer society.”
Graham Barnet, Chief Executive of Sigma, said: “We are delighted to have the support of the Prime Minister and the Business Secretary as we deliver this innovative joint venture model, supplying high quality homes in areas of the country where rental housing is in extremely short supply.
“Gatehouse has substantial knowledge of and expertise in the UK property market and has shared our vision for this project.
“I am delighted that we are now working together to deliver the roll-out of our model, which has the potential to create one of the largest new build privately rented residential portfolios in the UK.”