Lloyds-backed HGP has made its first equity investment in the South West of England.
The firm’s newly established South West office has supported Cornish housebuilder Legacy Properties’ 80-home scheme in Trispen, Cornwall.
HGP’s equity investment of £2.5m, alongside a £20m loan from Pluto Finance as the senior debt provider, will fund the delivery of 53 open market homes and 27 affordable homes at The Paddocks scheme.
The for-sale homes will comprise a mix of three-, four- and five-bedroom detached and semi-detached houses and bungalows. The affordable housing will be delivered in partnership with a registered provider.
Alex Maltby, investment director at HGP, said: “We have chosen a fantastic partner in Legacy Properties for the recently established team’s first investment in the South West region, which will enable the delivery of high quality homes in an area of great demand. This latest investment extends our UK footprint, into a region where there is a structural shortage of housing and where we can make a real impact through our equity commitments. With more traditional funding routes remaining off the table for many developers, innovative solutions like ours are critical in supporting new housing delivery.”
Nick Long, managing director of Legacy Properties, added: “This joint venture with HGP is an important step for Legacy as we continue to grow responsibly across Cornwall. The Paddocks at Trispen is a scheme shaped around local housing need, with a strong community focus, and we are pleased to be working with a partner that shares our long-term view for creating great quality family homes in Cornwall.”
