The £60m raise is split between £30m debt from Homes England’s Home Building Fund and £30m of equity from multiple investors, including The Guinness Partnership, Middleton Enterprises, Sun Capital, and TDR Capital.
Homes England invested an initial £30m into Ilke Homes back in 2019.
The funding will allow the modular housing company to invest heavily in automating more of its manufacturing processes to drive efficiencies, secure more sites, and expand its ‘package deal’ strategy, which offers full development service of site, infrastructure, and homes.
The monies will also be used to scale up production and accelerate capacity to deliver up to eight homes a day, up from two currently, helping to bring down manufacturing costs in the process.
The firm delivers energy-efficient homes as part of its ZERO offering launched this year, which delivers zero-carbon homes annually for a mix of institutional investors, private developers, housing associations, and councils.
The company has already delivered zero-carbon homes on five sites across the UK.
Stephen Stone, board member of Ilke Homes (pictured above), said: “This announcement proves that there is a shared ambition among the public and private sectors to find innovative solutions to structural issues that have dogged the construction and housebuilding industries for decades.
“This new funding will help us create hundreds more highly skilled, green jobs for an economy that is gearing up for a green industrial revolution.
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“The fact that our own clients continue to either invest or increase their stakes in the company is testament to the dynamic approach Ilke Homes has taken to housebuilding in the past three years.
“Faced with regulatory pressures and a requirement to meet ESG criteria, we are finding that investors are increasingly scaling up their MMC strategies.”
Harry Swales, chief investment officer at Homes England, commented: “Manufacturers like Ilke Homes are vital if developers are to build new sustainable homes at the pace and scale the country needs.
“This debt facility from the Home Building Fund shows our commitment in increasing productivity and efficiency in construction to meet government’s housing delivery ambitions.”
Catriona Simons, group chief executive at The Guinness Partnership, added: “Our investment in Ilke Homes demonstrates our continued commitment to delivering high quality, energy-efficient homes as quickly as possible to those who need them most.
“Having partnered with the company on two sites already, we have seen first-hand the benefits Ilke Homes’ method of delivery affords, which will help ensure we can continue to play an important and active role to address the housing crisis.”
Stephen Robertson, founding partner at TDR Capital, stated: “The defensive attributes of residential property are attracting unprecedented levels of investment globally but, without a meaningful strategy to build greener, more energy-efficient homes at scale, we have no hope of meeting climate targets.
“Precision-engineering housing will be a critical solution to greening cities and, with housing needs continuing to significantly outstrip supply, we are also confident that this sector is immensely scalable.
“We believe there is huge potential for multiple other investors to work with us on spearheading this positive change.”
David Alprovich, chief operating officer at Middleton Enterprises, said: “Throughout our portfolio, we focus on companies that are disrupting traditional industries, have a competitive edge thanks to technology, and make a positive impact on society.
“Thanks to its innovative, forward-thinking approach to housebuilding, Ilke Homes fits all our criteria by deploying precision-engineering techniques that ultimately result in better quality, energy-efficient homes, less waste, and reduced construction programmes.”