The investment from Cheyne Real Estate Credit (CRECH) Fund V – Opportunistic takes the form of a joint venture, providing the SME housebuilder with access to the funding required for the next phase of its expansion as it pursues its target of delivering 500 homes a year by 2022.
This follows joint ventures with the Housing Growth Partnership on two of Backhouse’s current sites in Castle Cary and Westbury.
Rob Turner of Cheyne Capital will join the board at Backhouse as a non-executive director, alongside Richard Jones and Anthony Henry-Lyons, both former advisers to Backhouse.
As part of the investment, a portion of the company will be put into a share scheme for employees.
Theodore Backhouse, founder of Backhouse (pictured above, left), said that this was a very exciting moment in the history of the organisation.
“The investment is a strong endorsement of the team we have put together and what we have achieved to date.
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“There is a fantastic opportunity for SME housebuilders to grow as the UK looks to achieve its ambitious housebuilding targets and we are delighted to be working with Cheyne Capital as we embark on a phase of significant growth.
“We believe this partnership and our design-led ethos will pay dividends as the market sees new build volumes grow and choice increase for buyers."
Rob added: “We are excited to be supporting another high-quality housebuilding business in the UK and this investment is testament to what the Backhouse team has already achieved.
“This joint venture once again demonstrates Cheyne’s ability to provide innovative, flexible and bespoke financing solutions to organisations focused on increasing the supply of mid-market housing in the UK with strong management teams and robust growth plans.”
Also pictured (l-r): Steve Russell, managing director at Backhouse; and Kevin Moore, head of operations at Backhouse.