PfP Capital and Housing Growth Partnership launch £390m urban resi venture
PfP Capital and Housing Growth Partnership, an equity investor with a social impact remit backed by Lloyds Banking Group, have formed a joint venture to deliver residential-led, urban communities across the UK with a GDV of £390m.
The jv plans to tackle declining new home delivery, ageing stock and ongoing under-investment in the UK regions by delivering 1,200 highly sustainable homes across an initial 10 major regional city sites.
HGP and PfP Capital will both commit equity into the jv, which will focus on developing individually designed urban communities, centred around high-quality homes over the next three to five years. Leverage will be used on a scheme-by-scheme basis.
PfP Capital and Housing Growth Partnership, an equity investor with a social impact remit backed by Lloyds Banking Group, have formed a joint venture to deliver residential-led, urban communities across the UK with a GDV of £390m.
The jv plans to tackle declining new home delivery, ageing stock and ongoing under-investment in the UK regions by delivering 1,200 highly sustainable homes across an initial 10 major regional city sites.
HGP and PfP Capital will both commit equity into the jv, which will focus on developing individually designed urban communities, centred around high-quality homes over the next three to five years. Leverage will be used on a scheme-by-scheme basis.
Igloo Regeneration, the B Corp developer acquired by PfP Capital, will be responsible for developing the schemes, masterplanned by PfP Igloo, a long-term partnership between PfP Capital and Igloo Regeneration in collaboration with local authorities.
The first scheme to be brought forward is the initial phase, totalling 78 townhouses, of a 400-home development at Dundashill in Glasgow.
The completed development, a mix of two- three- and four-bedroom homes for sale, will be highly sustainable across the design, construction and operational stages, being of panellised modular construction with materials sourced from the local area.
A further nine PfP Igloo sites, in regional cities including Nottingham and Newcastle, are currently in the pipeline.
John Tatham, finance director at PfP Capital and an Igloo board member, said: “This partnership will accelerate the development of over 1,200 highly sustainable homes across the UK, at a time when the pace of new home delivery is rapidly declining.
“Residential regeneration, and community-led regeneration in particular, is key to revitalising parts of the UK that have suffered from underinvestment.
“Through bringing together a highly established equity investor, fund manager and award-winning developer, and leveraging long established local authority relationships, the jv will deliver tangible social value alongside competitive and stable long-term investment returns from day one.”
Rachel Miller, investment director at Housing Growth Partnership, added: “The jv reflects HGP’s ambition to support the UK’s diverse housing need through strategic partnerships with experienced developers and will see significant capital deployed into the transformation of urban brownfield sites in regional cities.”
Peter Connolly, chief executive at Igloo, said: “Dundashill is an excellent example of the low-carbon, sustainable homes that should be a blueprint for the UK’s future housing delivery.
“Connected to local ecology, cycle and walkways and nearby amenities, the jv will bring forward these schemes in partnership with existing communities using the Igloo Footprint methodology to ensure that they enrich people’s lives and the planet.”
To send feedback, e-mail akanksha.soni@eg.co.uk or tweet @AkankshaEG
