HGP and Genesis Homes announce partnership through recently launched Regional Growth Initiative
HGP and Genesis Homes (‘Genesis’) are pleased to announce that Genesis will be one of the first HGP partners in the newly establish Regional Growth Initiative (‘RGI’) which forms part of HGP’s newly created £300m property fund.
Genesis Homes is a Penrith based housebuilder, established in 2017 to deliver quality family homes, with the vision of becoming the leading housebuilder in the region. Genesis is focussed on delivering 2 storey affordable family housing in well-connected semi-rural locations that have an identified housing need. Genesis has a well established house type range which has been refined and improved using ongoing customer feedback and sales performance data.
Genesis’s recent (April 2021) acquisition of Russell Armer Homes has further underlined their growth ambitions and allows them to enter the South Lakes residential market with a well respected and sought after brand.
The RGI is a 5-year commitment that will see HGP investing up to £15m of equity alongside Genesis in residential developments across Cumbria and the South Lakes to allow them to target and purchase larger strategic development sites and grow into an established regional housebuilder.
Since 2018, HGP has provided Genesis with equity commitments of £9.1m across 7 development schemes, totalling 251 units, helping Genesis grow from delivering 10 units in its first full financial year to 75 units and revenue in excess of £20m in 2020. With the implementation of the RGI partnership, Genesis is well placed to meet its target of delivering over 180 units per annum from 2026 onwards.
Nicky Gordon, Managing Director of Genesis Homes commented: “The RGI has allowed us to utilise our equity in progressing a larger number of schemes and it provides us with additional confidence to grow our business through this reassurance that our equity can go further. The sharing of speculative time delay risk in the planning and pre start process is also of significance in that we know that our entire equity is not trapped in specific schemes that may experience a delay in commencement. The streamlining of legal and due diligence processes is also notable“
John McKeon, Investment Director of HGP, commented “HGP has supported Genesis for 4 years and been extremely impressed with the schemes delivered and the quality of the team that Nicky has built. It is with businesses like Genesis in mind, with strong capabilities, an ambition to increase their output and a strong local community focus, that we have developed the Regional Growth Initiative.
We look forward to continuing our support of Genesis as Nicky and the team look to deliver on their growth plans over the coming years and we look forward to rolling out the Regional Growth Initiative with further established partners.”