M&G invests £30m into sustainable housebuilder Greencore
Sustainable housebuilder Greencore Homes has secured a further £30m from M&G Investments to support its expansion across the South East.
The equity investment will be used to drive “significant expansion”, initially by targeting land acquisitions in the South East. The housebuilder, which uses modern methods of construction, has a stated objective to build 10,000 low-carbon homes by 2035.
M&G initially invested £15m into the company around two years ago, when it bought a majority stake in the housebuilder.
Sustainable housebuilder Greencore Homes has secured a further £30m from M&G Investments to support its expansion across the South East.
The equity investment will be used to drive “significant expansion”, initially by targeting land acquisitions in the South East. The housebuilder, which uses modern methods of construction, has a stated objective to build 10,000 low-carbon homes by 2035.
M&G initially invested £15m into the company around two years ago, when it bought a majority stake in the housebuilder.
The total £45m sum has come from the investment manager’s Catalyst strategy, which seeks to invest in innovative companies tackling environmental and social issues. The Catalyst team manages a £5bn purpose-led flexible private markets mandate on behalf of the £126bn Prudential With-Profits Fund, which includes PruFund1.
Greencore focuses on developing homes that achieve a net zero carbon balance in operation and target better than net zero in terms of embodied carbon in the structure. Its model involves building timber-frame panels in its factory, which are insulated with natural materials including hemp, lime and wood-fibre.
The homes are energy-efficient and are designed and built to meet Passivhaus thermal performance standards.
Greencore said it is seeking new partnerships to deliver affordable and private housing for rent and for sale, in addition to its existing partnership with M&G.
Zach Webb, head of european investments in Catalyst, said: “Greencore’s approach is unique and a disruptive solution with huge potential to scale. Our extra investment will create opportunities to deliver urgently needed high quality, ultra-low carbon homes, using methods and materials that showcase what the future of the UK housebuilding industry could look like.”
Jon Di-Stefano, chief executive at Greencore Homes, said: “Our vision is to lead the housebuilding industry in the delivery of climate positive homes and M&G’s further investment reflects its confidence in our potential to take on this role and operate at scale.
“This investment will enable us to secure the land needed to deliver on our targets whilst supporting local communities, jobs and the environment. We look forward to continuing our strong relationship with M&G while we seek out new partnerships to help bolster our pipeline and support our target of building 10,000 climate-positive homes.”
Photo from Greencore Homes
