A number of sites have already been identified for schemes of 100+ units across the key cities of England.

Grainger expects to fully own the initial developments sourced by Sigma who will also act as development manager on the majority of projects.

Andrew Cunningham, Chief Executive of Grainger plc, 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.

“We are at the forefront of the private rented sector and remain committed to delivering high quality new homes, benefitting local communities whilst delivering shareholder value.”

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.

“The partnership enables us to accelerate the delivery of large scale PRS schemes throughout the UK, particularly in England’s major cities outside London.

“This acceleration of our activities will help further expand the breadth of opportunity with our partners as we deliver on this.

“The combination of Grainger’s funding ability and asset and property management expertise, and our local authority relationships and development management skills, brings gains to both sides – as well as to our associated partners.

“We are already appraising our first schemes and look forward to rolling out this programme with our new partner, Grainger, in due course.”