We partner with proven housebuilders and developers that have a passion and desire to grow. HGP can invest up to £30m of equity in individual projects and up to £60m in Strategic Partnerships.
A diverse and sustainable residential development sector with housebuilders and developers playing a significant role in stimulating the level of housing supply that the country needs.
To partner with housebuilders and residential developers to support the sustainable growth of their businesses, increasing the number of homes they can produce, whilst acting to promote and champion innovation within the housebuilder and residential development community.
Patient equity with a transparent first loss risk sharing approach taken.
- Ability to support multi tenure developments across all areas of the living sector including private for sale family housing, Build to Rent, PRS, Regeneration and Retirement Living
- Equity invested on a site specific basis with first loss risk accepted alongside our partners
- Developer equity contribution can be in the form of capital and/or land
- No interest margin or fees are charged
- Profit share is agreed on a case by case basis with higher return on investment for the developer over HGP
- Developer retains responsibility for the management of the project with monthly management fee paid
- 3rd party debt raised in the market to support the transaction
- We provide initial feedback quickly and have short approval processes with Investment Directors sitting as voting members of the Investment Committee
- We undertake due diligence on all investments but we make this streamlined and cost effective
- Typically a two month process: 2-3 weeks to understand your business model and funding requirements and 4-6 weeks to complete the investment
Why Partner with HGP?
- Partnership: Collaborative approach which shares financial risk proportionally. We invest in the project not the business and the developer’s investment ranks equally with ours
- Return: Bespoke profit share on a deal by deal basis to enhance the developer’s return on capital invested in the site
- 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 share experience and network