The JV is targeting the construction of up to 1,200 sustainable houses — with a total GDV of c £390m — to tackle declining new home delivery.

HGP and PfP Capital will both commit equity for the homes across an initial 10 UK regional city sites — including Glasgow, Nottingham and Newcastle — 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 in January, will be responsible for developing the schemes, in collaboration with local authority counterparties.
 
The first project to be brought forward will be the initial phase of a 400-home development at Dundashill, Glasgow, which will deliver 78 townhouses.

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The completed scheme will comprise a mix of two-, three- and four-bedroom homes, which will be highly sustainable across the design, construction and operational stages, being of panellised modular construction with materials sourced from the local area.

Some 80% of the low-energy properties will target an EPC A rating, with additional features including photovoltaic roof panels, air source heat pumps and electric vehicle enabled parking.

A cycle path linking the site to Glasgow city centre will encourage healthy living habits and improve accessibility.

John Tatham, finance director at PfP Capital and Igloo board member, commented: “Residential regeneration and community-led regeneration in particular, is key to revitalising parts of the UK that have suffered from underinvestment.”

Rachel Miller, investment director at HGP, added: “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 our ambition to support the UK’s diverse housing need and will see significant capital deployed into the transformation of urban brownfield sites in regional cities.”