Scottish Widows has provided a £150m long term loan facility to The PRS REIT plc, the closed-ended real estate investment trust established to invest in new-build homes for the Private Rented Sector.
The new 25-year loan will be secured by a portfolio of 1,500 UK newly built private family rental homes. It follows a £100m 15-year loan provided by Scottish Widows to The PRS REIT plc in 2018.
The new loan facility was negotiated by The PRS REIT plc’s Investment Adviser, Sigma PRS Management Limited. Sigma PRS Management Limited is a subsidiary of Sigma Capital Group plc.
Jason Morris, Director of Scottish Widows Loan Investments, said: “We have worked closely with Sigma Capital to put in place this new long-term loan for The PRS REIT plc, building on our strong relationship following the Scottish Widows funding support provided last year.
“We are proud to be increasing our commitment to the housing sector and this loan supports the provision of much needed quality family homes for rental.”
Graham Barnet, Chief Executive Officer, Sigma Capital Group plc, said: “We have established an excellent working relationship with Scottish Widows over the past year. The team understands our business and objectives, and this loan will help us to achieve our target of creating a substantial portfolio of new, high-quality rental homes across the regions of England.
“With our funding resource now approaching £900m, we are in an excellent position to deliver our target of over 5,500 new rental homes.”