Modular housing manufacturer ilke Homes has raised £100m from new and existing shareholders to fund its continued development.
The fresh funding, the largest amount ever raised by a UK modular housebuilder, will enable the firm to scale-up its operations, open a new factory and increase output capacity to 4,000 homes a year, it said.
The funding round was led by Fortress Investment Group LLC, which joins existing investors Abu Dhabi-owned TDR Capital and Sun Capital as an owner of the business.
The investment will also allow the company to invest heavily in automating more of its manufacturing processes to further drive productivity, it said.
Rahul Ahuja, co-head of European credit at Fortress Investment Group, commented: “We see Ilke Homes as the UK market leader in the manufacturing of modular housing and believe the company is uniquely positioned to increase the availability of high quality affordable housing in the UK while accelerating the transition to net zero.”
TDR Capital partner, Jonathan Mitchell, said: “The success of Ilke Homes’ capital raise in the context of the difficult current funding environment is testament to its innovative business model and dedicated management team. Having achieved triple digit growth across the group for successive years, Ilke Homes is strongly positioned and capitalised to deliver in a market with strong long term fundamentals.”
Ilke Homes chief executive, Giles Carter, said: “Our latest fundraise demonstrates that the private sector is increasingly recognising the investment case for change. With the race to net-zero well and truly underway, the next few years will be a decisive time in the history of housebuilding, so it’s important that true market disruptors are empowered to play a leading role.”
Image credit: ilke Homes
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