Following yesterday’s announcement that the Government would match-fund a £50 million investment from Lloyds Banking Group in a new Housing Growth Partnership for small house builders, the Partnership has today published more details of eligibility criteria and how to go about seeking investment.
The £100 million fund will invest capital directly into residential development projects alongside house builders with:
A proven track record in land buying, design, marketing and sale of new homes
An average delivery capacity of 10-100 completions per annum over the last three years
Cover from an acceptable insurance guarantee
Investments will range from £500k to £5m in projects that meet the criteria below:
5 to 75 units
Gross development value of £750k to £12m
Minimum of outline planning permission already secured
Development of up to 36 months (maximum project length of 48 months including planning)
Commencement of construction possible within 12 months of investment
Investments can be of up to 75% of the total equity required and will share both the risk and the profit upside (based on a tailored profit-sharing arrangement). Eligibility will be contingent on a house builder contribution either in the form of cash or development land.
HBF has supported the development of the fund through our discussions with government, the HCA and Lloyds Banking Group. We will shortly be confirming details of two forums for house builders to find out more from about the Partnership. We will be in touch shortly with more information about these events.
In the meantime, to find out more, and speak to representatives of the Partnership to discuss criteria or nature of investment, visit http://www.housinggrowth.com/.
Home Builders Federation
London, SE1 9PL
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