The initiative follows the Edinburgh-based firm’s existing PRS joint venture agreements with Gatehouse Bank and Grainger.

The fund will initially focus on the development of family homes across up to eight sites, with the first sites to be delivered in the Greater Manchester and Liverpool regions.

The commencement of construction is targeted for early 2016.

Graham Barnet, chief executive of Sigma, said: “I am delighted to announce this successful fundraising, which has been supported by new as well as existing investors. It will enable us to build our own substantial PRS portfolio, capitalising on the infrastructure and relationships we have spent the last three years putting in place for large scale PRS. We are already deploying this platform successfully with Gatehouse with the first phase of 927 PRS homes well underway.

“The development of our own portfolio will significantly enhance returns and generate additional material long-term recurring income. This has been a long term aim for Sigma and the Placing marks an important step in the ongoing development of Sigma. There is an urgent need for new housing in the UK and we look forward to developing our own PRS assets as well as continuing to deliver new rental homes under our partnership model.”