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Sigma acquires property regeneration project company

Inpartnership has been acquired from two parties, URWI (Inpartnership) Limited (URWI), an investment vehicle controlled jointly by West Coast Capital (WCC) and HBOS, and West Coast Capital (Trading) Limited (WCC Trading), a wholly owned subsidiary of WCC. The consideration payable for the acquisition is £347,000, to be satisfied by the issue of 2,170,078 new Sigma ordinary shares of one pence each at a price of 16 pence per share.  

Under the terms of the agreement, in addition to the consideration payable, once Inpartnership has achieved a minimum overhead recovery in any one year, WCC Trading is entitled to a share of any future development profits from Inpartnership’s existing projects (the Development Profit).  Out of the first £10 million of Development Profit generated, Sigma will receive a minimum of £6.9 million with WCC Trading entitled to a maximum of £3.1 million. Thereafter, WCC is entitled to a 10% share of any further Development Profit in perpetuity from the existing projects.  Additional information on the Development Profit is set out below.

Founded in 2001 and operating from offices in Manchester and Birmingham, Inpartnership was established as an investment led property related regeneration company, specialising in the creation of long term, asset backed partnerships with the public sector.

Inpartnership has secured three partnerships, with Liverpool City Council, Solihull Metropolitan Borough Council and Salford City Council, each ranging from 10 to 20 years’ duration. The partnerships hold long term option arrangements with the respective local authorities for a mix of residential, commercial, education and health opportunities.

In total, the partnerships provide for the delivery of around 10,000 new homes, a significant number of new retail centres, health/medical centres, schools and mix of retail/ leisure facilities. The total development value of the opportunities held within the three partnerships is estimated at over £2 billion.

The existing senior management team at Inpartnership, comprising Duncan Sutherland and Graeme Hogg, co-founders of the company, will remain as directors of Inpartnership, assisting with its integration with the Group and its ongoing development supported by members of Sigma’s property team.

Reflecting the increasing importance of the Group’s property-related activities, Sigma has also announced the appointment of John Hamilton and Gwynn Thomson, directors of its property subsidiary, to its Board of Directors.