HGP invests £17.7m into Midlands schemes

Housing Growth Partnership (HGP) invests in the Midlands by funding seven housing schemes - one of which is Build to Rent - with major developers.

Birmingham's Jewellery Quarter, which is gaining interest from Build to Rent investors and developers | BTR News
Birmingham's Jewellery Quarter, which is gaining interest from Build to Rent investors and developers.

Lloyds-backed equity investor in the UK Living sector HGP has invested £17.7m of equity across seven housing schemes in the Midlands, including Build to Rent. The area is a key region for HGP, where it has been partnering with SME housebuilders since 2016.

The investments have been made since the start of this year, and alongside a diverse mix of established, local housebuilders, will enable the accelerated delivery of 557 much-needed Build to Rent and for-sale apartments and houses across the undersupplied Midlands region.

The schemes are scheduled to complete between Q3 2024 and Q4 2025. The Build to Rent scheme will deliver 171 new apartments in Leicester city centre and will be delivered alongside Monk Estates.

Other schemes include a sustainability-led retrofitting of the former St. Mary’s Hospital in Melton Mowbray, in Leicestershire, that will deliver 41 houses and four apartments, alongside Snowdown Homes. 37 and 166 apartments respectively in Birmingham city centre, with Rainier Developments and 10M.

21 homes in Sutton, Bedfordshire, representing a second transaction with Cora Homes, where the scheme will be partly delivered using Modern Methods of Construction which will reduce carbon emissions and accelerate construction.

47 new homes in Tansley Gardens, alongside Stancliffe Homes and finally, land purchase for c.70 new homes in Derbyshire – also in partnership with Cora Homes.

“Against a restrictive debt financing backdrop, the requirement from regional UK developers for funding solutions that enable them to grow their businesses and accelerate housing delivery has never been more acute. We have significant ambitions in the Midlands to continue expanding into different tenures. At the same time, these investments are aligned with our commitment to funding schemes which are delivering demonstrable environmental and social value.” 

Mike Murphy, Investment Director for the Midlands, HGP

To date, the investor has provided c.£37m of equity funding across 20 schemes in both the East and West Midlands, of which over £26m has been invested over the last two years.

HGP investments have committed to deliver over 8,350 new homes (with GDV in excess of £2.7bn) across Build to Rent, purpose-built student accommodation (PBSA), open market, retirement living and regeneration schemes.