Edinburgh-based Sigma Capital has raised £250 million through its new real estate investment trust (REIT).

The group’s chief executive Graham Barnet said the PRS REIT fund, to be listed on the main London market next Wednesday, was “significantly oversubscribed”.

The property trust will invest in the private sector rental market, aiming to provide investors with an attractive level of income together with the prospect of income and capital growth.

There is a target dividend yield of five per cent in the period to 30 June 2018.

He added: “The launch of the PRS REIT is a momentous event for Sigma.

“It transforms Sigma’s model, giving the company control over a pool of capital to deliver, with our partners, a substantial pipeline of PRS opportunities.”