Under the agreement announced today, Countryside initially expects to build 361 private rental homes through its mixed-tenure Partnerships division across London.

The delivery of private rental homes, where demand remains strong, will enable acceleration of important regeneration projects and earlier delivery of larger mixed tenure schemes.

The joint venture between Sigma and investor EQT Real Estate is being supported by Homes England and is targeting a portfolio worth more than £1bn.

This new agreement will drive further growth of the Partnerships division in London as part of the strategy outlined for Countryside’s £250m equity fund raise in July.

Its Partnerships business has 40,267 plots in its land bank or at preferred bidder stage equivalent to nine years’ worth of work at 2019 volumes offering great visibility over the medium-term.

Iain McPherson, group chief executive, Countryside, said: “We are delighted to have expanded our strategic relationship with Sigma and its new partner EQT Real Estate, to deliver much-needed PRS homes within London.

“Our Partnerships business has a proven track record and, together with our clear strategy for growth, we look forward to continuing to work with our partners as we focus on the delivery of high quality and sustainable mixed-tenure communities.”

Graham Barnet, CEO of Sigma Capital Group, said: “Sigma and Countryside have a successful relationship which has delivered over 4,200 PRS homes in the regions, and we are delighted to be expanding this partnership into London.”