PfP Capital and Housing Growth Partnership (HGP) have launched a £390m GDV joint venture to deliver 1,200 sustainable homes across regional UK city communities.
Social value and ESG focused real estate fund manager PfP and Lloyds Banking Group backed HGP are both committing equity into the JV, which will focus on developing individually designed urban communities across an initial 10 regional city sites over the next three to five years.
igloo Regeneration, which was acquired by PfP Capital in January, will be responsible for developing the schemes masterplanned by PfP igloo – a partnership between PfP Capital and igloo Regeneration in collaboration with local authority partners.
Construction of the first phase of a new 400-home community at Dundashill in Glasgow (pictured) is already underway by the JV with 80% of the low energy properties targeting an EPC A rating. A further nine PfP igloo sites, in cities including Nottingham and Newcastle, are in the pipeline.
John Tatham, finance director, at PfP Capital and igloo board member, said: “This partnership will accelerate the development of over 1,200 highly sustainable homes across the UK, at a time when the pace of new home delivery is rapidly declining. Residential regeneration, and community-led regeneration in particular, is key to revitalising parts of the UK that have suffered from underinvestment.
“Through bringing together a highly established equity investor, fund manager and award-winning developer, and leveraging long established local authority relationships, the JV will deliver tangible social value alongside competitive and stable long term investment returns from day one.”
Rachel Miller, investment director at Housing Growth Partnership, added: “In PfP Capital and igloo, 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 HGP’s ambition to support the UK’s diverse housing need through strategic partnerships with experienced developers and will see significant capital deployed into the transformation of urban brownfield sites in regional cities.”
Peter Connolly, CEO at igloo, said: “Dundashill is an excellent example of the low carbon, sustainable homes that should be a blueprint for the UK’s future housing delivery. Connected to local ecology, cycle and walkways and nearby amenities, the JV will bring forward these schemes in partnership with existing communities using the igloo Footprint methodology to ensure that they enrich people’s lives and the planet.”
