HGP partners with proven developers and housebuilders that have the passion and appetite to grow. Our approach is patient and collaborative.
Our funding
HGP is a subsidiary of Lloyds Banking Group. We invest capital from Lloyds, as well as Homes England, the government’s housing accelerator. HGP have discretion on investments within our fund mandate, resulting in a fast decision making process to allow our partners to be agile in their approach.
Partnering with HGP
- Capital is invested on a site specific or multi-site basis, sharing risk with our partner.
- HGP do not charge interest or fees, and our bespoke profit sharing arrangement rewards the developer with a greater share of profit than the share of equity they put in.
- Our partner retains control and responsibility for project.
- Third party debt is raised from a range of funders to support the project.
Types of partnership
- HGP can invest in individual schemes, up to £30m of HGP Equity
- Regional Growth Initiatives, where HGP invests up to £30m with selected partners across several sites.
- Strategic Partnerships which allow HGP to invest up to £60m of HGP investment with larger established developers across a pipeline of sites.
- Larger Investments can be considered subject to investor approval
Why Partner with HGP?- We invest in the project not the business such as to not interfere with Partners existing funding structure.
- We do not charge fees and the developer’s investment ranks equally with ours
- Partnership: Patient and collaborative approach which shares financial risk proportionally.
- Return: Bespoke profit share on a deal by deal, “more for less” basis to enhance the developer’s return on capital invested.
- Growth: Frees up capital for the developer to reinvest in its business. Ability to invest in multiple projects at any one time.
- Value: Ability to recognise current market value of land, including planning gain, at the point of investment.
- Experience: Extensive residential development and equity investment experience in the team with a pool of senior industry advisors available to support projects, their management teams, share experience and network.
- You can view testimonials from HGP’s partners here.
Investment parametersHGP is highly flexible in the type and structure of schemes we will consider, to enable us to be the equity partner of choice for the best developers and housebuilders in the UK.
- We partner with ambitious housebuilders and developers who have a proven track record.
- Our equity investments range from £1m to £30m, with larger investments considered subject to additional approval.
- We invest throughout the UK.
- HGP cover all residential-led schemes, including houses and apartments for sale, retirement living and care homes, build to rent and co-living, student accommodation, affordable housing and regeneration. Schemes may include a commercial element.
- HGP can take an element of planning risk which is assessed on a deal by deal basis.
- We will look to exit after completion of the scheme, but can hold to stabilisation in the case of rental projects.
- A minimum co-invest from our partner is required, equating to the greater of 20% of equity or 4% of total debt and equity.
- We prioritise schemes with strong environmental sustainability, and which have a positive impact on communities.
