Developer launches housebuilding division with £100m war chest
Property group Seven Capital is to launch a regional housebuilding division, SevenHomes, focusing on family homes and is allocating £100m to support its ambitions.
The Birmingham-based developer plans to start by delivering 500 homes on land it has already secured while it expects to “deploy a significant amount of capital” in the next year.
It believes there is a gap in the market for “a regional housebuilding business with a strong brand and reputation for delivering high quality affordable homes” and hopes that SevenHomes can exploit the potential.
SevenHomes has been set up to build family housing in the West Midlands and surrounding counties which appeals to first-time buyers, second movers and families.
Seven Capital’s development director Samuel Clark, who previously held that role for a regulated fund investing in residential development projects across the UK, has been named managing director of the housebuilding division.
He said: “We believe there is a clear a gap in the market for a regional housebuilding business with a strong brand and reputation for delivering high quality affordable homes.
“We have been quietly working hard over the past 12 months to secure a number of development sites for the anticipated delivery of 500 homes.
Seven Capital has been a prominent player in Birmingham’s property market since it was launched in 2007, and its residential property developments in the city include No 1 Hagley Road, Lansdowne House and The Quadrant. It has also developed sites outside of the region, including Liverpool and Basingstoke.
The developer banked a post-tax profit of £21.8m in its last financial year, to September 2016, on revenue of £113.5m.
Clark added: “Suburban family housing is a natural evolution to the Seven Capital business which played a pivotal role in the return of city living in Birmingham.
“To date the business has sold over 2,500 apartments within the Midlands apartment market and is now onsite with over 1.5m sq ft of construction as part of its commitment to build out its 5,000 unit pipeline.”
