Modular housebuilder Tophat has raised a £70m investment from new and existing stakeholders as they move closer to opening Europe’s largest modular housing factory in Corby
Modular housebuilder Tophat has raised £70m in investment from the likes of FTSE-100 housebuilder Persimmon and institutional investor Aviva via the Aviva Capital Partners unit.
Existing shareholders Goldman Sachs Asset Management also subscribed to the latest round of fundraising. Previous collaborator Homes England, which funded TopHat’s development at Kitchener Barracks in Chatham, will continue to explore the potential for additional support as part of its ongoing commitment to the sector.
The news follows Tophat development of the largest modular housing factory in Europe, which will manufacture up to 4,000 ultra low-carbon homes a year in Northamptonshire.
The Tophat investment represents shared sustainability and innovation goals between stakeholders and the developer
Aviva plc’s new in-house capital unit seeks to bolster its sustainable community strategy via the delivery of infrastructure assets.
Persimmon has expressed an aim to embrace the manufacturing techniques pioneered by Tophat to complement their existing Space4 timber frame product, driving further build efficiencies in order to meet the Future Homes Standard.
Dean Finch, Group chief executive at Persimmon, said: “This investment provides Persimmon with guaranteed access to very energy-efficient volumetric modular units as well as TopHat’s innovative brick façade to use with our Space4 timber frame products. This will provide further build efficiencies, manage the growing challenge of labour shortages in key trades and expand our product range for customers. Combining our complementary industry-leading capabilities alongside other significant new investment makes me excited for the opportunities ahead.”
Homes England remains committed to developing the modular sector to boost the supply-side economics and sustainability of house building.
Tophat’s new modular housing factory could be crucial in meeting the demand for affordable and sustainable housing
A recent report from the House of Lords’ Built Environment Committee suggested modular housing will be instrumental in speeding up development and improving the quality of new-build homes, of which there is a shortfall of approximately 4.3m.
Reducing the UK housing stock’s operational emissions is deemed vital if the UK is to meet its legally binding net-zero targets. Energy use in homes currently makes up 23 percent of the UK’s greenhouse gas emissions – more than double the amount from agriculture, and nearly as much as all transport emissions.
The new round of investment will help Tophat increase their current housing input of 800 homes a year.
The new 650,000 square feet manufacturing facility in Corby will employ 1,000 people upon completion in 2024. Several of these appointments will be apprentices or employees entering the sector for the first time, working alongside the most advanced house building robots operating at scale in the UK.
Tophat reduces a home’s carbon footprint through a zero-carbon operational production process and utilising solar panels and battery storages to help cut energy bills and ensure long term sustainabilty for both residents and investors.
Making modular homes available to everyone
Jordan Rosenhaus, CEO and founder at TopHat, said: “Today’s announcement is testament to the innovative approach that TopHat continues to take to house building and marks a step-change for the future of housing. It has been clear for some time that designing and building green, beautiful homes in factories is a critical part of solving the housing crisis – and today’s announcement will enable TopHat to reach the scale where the new generation of modular homes can be made available to everyone.”
John Cummins, CEO, Aviva Capital Partners, said: “Aviva is using its financial strength to invest in the sustainable infrastructure and real estate which are central to the UK’s net zero transition. TopHat is a pioneer of low-carbon homes and this investment will make sustainable housing more widely available, making a difference to communities and providing a retirement income for our customers.”
Harry Swales, chief investment officer at Homes England, said: “Modern Methods of Construction have the potential to revolutionise the housing sector, driving greater efficiency and productivity, reducing carbon emissions, decreasing disruption caused by construction and increasing consumer choice.
“As the Government’s housing and regeneration agency, we’re committed to increasing the use of MMC, and supporting our partners in the sector to invest in it. This investment from TopHat, Persimmon and Aviva Capital is not only an important step forward for TopHat, but really encouraging for the wider sector.”
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