Briar Homes agrees £10m funding package with Housing Growth Partnership
Briar Homes is to become one of the first UK housebuilders to be supported by a Regional Growth Initiative (RGI) from Housing Growth Partnership (HGP) which forms part of the social impact investor’s newly created £300 million property fund.
The RGI is a four-year commitment that will see HGP investing up to £10m of equity alongside Briar, targeting new sites for family housing in locations across Central Scotland, with a particular focus on Glasgow and the surrounding commuter belt.
Colin Bennett, HGP investment director for Scotland, said: “We are delighted to support regional housebuilders like Briar Homes, which have the ambition to provide much-needed new homes and also to give those searching for a new property more options beyond a market dominated so heavily by PLC housebuilders.
“Our relationship with Briar goes back some years in fact. Being part of the AS Group, a family owned and operated business, we first invested alongside AS Homes in 2016 supporting its entry back into the private development market and they created an incredible location at Broomhouse.”
Since 2016, HGP has provided Briar with equity investment of £3.6m across two development schemes, delivering over 100 units and assisting with the company’s ambitious growth plans. With the implementation of the RGI partnership, HGP aims to support the development of up to a further eight sites and over 400 new homes.
Paul Kelly, managing director of Briar Homes Ltd, said: “The support we have received by working in partnership with HGP over the past four years is key to our continued growth. We are delighted to be signing up as their first ‘Regional Growth Initiative’ partner in Scotland, with an initial £10m funding commitment over the next four years. This allows us to focus on building high quality, architect-designed homes in sought after locations.
“The funding partnership is vital to our aim of creating new homes to exacting standards. The first development funded through the RGI of 35 homes at Dealston Road will offer buyers a higher specification as standard and will create a new community within the popular town of Barrhead, Glasgow.”
Colin added: “Briar’s focus on high quality, good value homes epitomises the value that small and medium-sized housebuilders bring to their local communities.
“Our joint discussions around how HGP could better support their plans for the future helped us shape the RGI as a proposition, and we are delighted to be providing long-term support to the business through the newly created £300m fund.”