PfP Capital, the social value and ESG-focused real estate fund manager, 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 gross development value of £390 million.
The JV aims to develop a secured pipeline of regeneration sites across cities including Glasgow, Newcastle and Nottingham over the next 3-5 years.
BCorp developer igloo Regeneration will be responsible for delivering schemes, with construction of initial phase of first 400-home community in Glasgow underway.
Housing Growth Partnership and PfP Capital will both commit equity into the JV, which will focus on developing individually designed urban communities, centred around high quality homes across an initial 10 major UK regional city sites, over the next 3-5 years.
igloo Regeneration, the BCorp developer acquired by PfP Capital in January, 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 authority counterparties.
The first scheme to be brought forward is the initial phase, totalling 78 townhouses, of a 400-home development at Dundashill, in Glasgow. The 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. 80% of the low energy properties will target an EPC A rating, with additional features including photovoltaic roof panels, as well as air source heat pumps and EV enabled parking. A cycle path, linking the site to Glasgow city centre, will encourage healthy living habits and improve accessibility.
A further nine PfP igloo sites, in regional cities including Nottingham and Newcastle, are currently in the pipeline.
The JV will leverage PfP Capital’s track record delivering investment outperformance and ongoing value growth across its three residential-led funds. PfP Capital, which is part of the Places for People Group , a large and leading social enterprise in the UK, has delivered 2,500 mixed-tenured homes across England and Scotland to date, with a further 1,700 under development or in the pipeline.
John Tatham, finance director, at PfP Capital and igloo board member, commented: “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, stated: “In PfP Capital and igloo, we have a partner that shares both our social impact and sustainability values, and our desire to accelerate the much needed delivery of quality homes across the UK. 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, CEO at igloo, added: “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.”
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