The partnership will see two, three and four bedroom private rental properties built across the UK, with the investment worth an estimated total of £800m.
The homes will be built in the North West, Yorkshire, the Midlands and North London and the firms intend to begin construction on over 1,000 of the properties by this time next year.
The venture represents Keepmoat’s first development activity in the private rented sector.
Dave Sheridan, chief executive at Keepmoat (pictured), said the move is a significant milestone for the business.
“The partnership will deliver great quality market rented homes alongside our Keepmoat homes for sale, which will allow the pace of housing delivery on strategic sites to be increased, to deliver the government’s aspirations and provide people across the country with much-needed housing options,” he said.
“There is an inherent need for more housing across the country, and we are looking to tackle the issue head on.”
Graham Barnet, chief executive of Sigma, said the partnership with Keepmoat would “create more housing options and meet the growing need for alternative tenure housing in key areas across the country”.
The partnership will deliver homes mainly for private rent on land owned and to be acquired by Keepmoat, who will also lead on the design, planning and build process. Lettings and investment management will be undertaken by Sigma.