Investors Back Modular Firm with £70m Investment
In an exciting development for the UK housing industry, major house builder Persimmon and institutional investor Aviva have thrown their weight behind TopHat, a trailblazing company that specializes in the construction of factory-made modular houses. This investment marks a significant step forward in the evolution of the housing sector, with a clear shift towards sustainable and efficient construction methods.
TopHat’s Fundraising Success
TopHat, a company that has been making waves in the housing industry with its innovative approach to home building, recently announced that it has raised a whopping £70m in its latest fundraising round. The round saw participation from US-based firm Goldman Sachs, further solidifying TopHat’s position as a leading player in the modular housing market.
Increasing Production Capacity
TopHat’s current production facility, located in Derby, is capable of manufacturing up to 800 homes annually. However, the company is gearing up to significantly increase its production capacity. A new 650,000 sqft factory is under construction in Corby, Northamptonshire, and is expected to reach full production by mid-2024. Once operational, this factory will be the largest modular factory in the UK, outstripping the 550,000 sqft warehouse of rival Legal & General (L&G) Modular Homes near Leeds.
Unique Business Model
Unlike its competitors L&G and Ilke Homes, TopHat operates a unique business model where it only sells houses to third parties. Its customer base is diverse, with housing associations, developers such as Ikea’s BoKlok, and build-to-rent providers each accounting for about a third of its output.
Commitment to Sustainability
TopHat’s commitment to sustainability is evident in its claim that all its homes are capable of achieving zero carbon emissions. This is made possible through the incorporation of heat pumps, insulation, and solar panels in its homes.
Industry Reactions
Jordan Rosenhaus, the CEO and founder of TopHat, believes that the £70m fundraising marks a significant turning point for the future of housing. He envisions a future where the new generation of modular homes is accessible to everyone.
Dean Finch, the group CEO of Persimmon, echoed Rosenhaus’s sentiments, stating that the investment in TopHat would provide Persimmon with access to energy-efficient modular units and TopHat’s innovative brick façade. This, he believes, will lead to greater build efficiencies, help manage labour shortages in key trades, and expand their product range for customers.
John Cummins, the CEO of Aviva Capital Partners, lauded TopHat as a pioneer of low-carbon homes. He expressed his belief that the investment would make sustainable housing more widely available, thereby benefiting communities and providing a retirement income for their customers.
Harry Swales, the chief investment officer at Homes England, hailed the investment as an important step forward for TopHat and a positive development for the wider sector.
Conclusion
In conclusion, this investment signifies a major shift in the housing industry towards more sustainable and efficient construction methods. With the backing of major players like Persimmon and Aviva, TopHat is well-positioned to lead the charge in the modular housing revolution.
