Japanese housebuilder Sekisui House is entering the UK residential housing market after agreeing to invest £22 million of new equity.
The deal means Sekisui working with Homes England and taking a 35% equity stake in the developer Urban Splash’s modular house business. The Government’s Home Building Fund delivered through Homes England has agreed to fund £30 million of equity and debt financing.
The injection of £90 million into the UK housing market will lead to thousands of new homes being built across England.
Faster production of new homes working with local communities
This latest deal will mean that the UK’s modular housing industry is able to take a big step towards the modern building model of producing homes in factories which will speed up production of much-needed new homes, that are then shipped out to sites.
Yoshihiro Nakai, president and representative director of Sekisui House Ltd said: “Using modern methods of construction to build high quality homes with short build times is one of our company’s great strengths. Our technology and know-how can help resolve pressing social issues in the UK,’ said ‘I want to see us play our part effective immediately. These operations can also help bring vitality to UK regions and we will work to make the strongest connections with the local communities.”
Modular transformation
Government Housing minister Kit Malthouse said: “Backed by Government investment, the announcement will support our urgent mission to deliver more, better and faster home construction to ensure a new generation can realise the dream of home ownership. Sekisui House has a proven track record in harnessing the modern methods of construction transforming home building.
Homes England, driving the Government’s housing initiative has played a key role providing major financial support and expertise to the new partnership as well as offering commitment to the investors.
Better quality housing and greater consumer choice
Sir Edward Lister, chair of Homes England commented: “Last year, when Homes England launched, we said we’d disrupt the housing market to increase the pace of construction. By helping bring one of the world’s largest and most innovative housebuilders to the UK, we’re putting our money where our mouth is. In creating a more diverse landscape, where smaller builders such as Urban Splash get a stronger foothold, we’re pushing up quality and improving consumer choice.”
Tom Bloxham, chairman of Urban Splash said: “We hope to leverage our 25 years of place making experience and our recent investments into modular housing by bringing in new partners. We chose chose Sekisui House because of their outstanding global experience in modular construction. We also share company values and a philosophy that we are making homes not units with a firm commitment to a green future.”
