Liverpool housebuilder receives £6.75m of equity funding
A Liverpool-based housebuilder has received £6.75m of funding in return for a 35% stake in the business.
Hassett Homes got the funding injection from TGF Capital.
The investment will enable the firm to access competitive senior debt markets as it seeks to grow its turnover to £30m within three years.
The company, which develops high specification homes in suburbs including Aughton, Formby and Eccleston, will achieve sales of £11m in the current financial year.
Hassett Homes founder, Jamie Blennerhassett, said: “This is the natural extension of our relationship with TGF Capital and I’m delighted to have them as a board and shareholding partner.
“Having institutional-grade backing of this type puts us on a very firm footing as far as our future funding needs are concerned.
“The move will enable us to access up to £20m in low-cost finance to drive our site acquisition and development programme, as well as strengthening our corporate governance,” he added.
The two companies have been working together for more than two years, with a mix of debt funding and development-specific equity. The decision to formalise the relationship at group level was the natural next step, said Steven Peck, of TGF Capital.
He said: “Having seen the quality of the management within the business and the quality of the houses it delivers, stepping up our involvement made perfect sense.
“We bring a lot to the table and will be committed shareholders, keen to drive growth and performance over the long term.”
Glenville Walker acted on behalf of Hassett Homes on the transaction. Husband Forwood Morgan acted for TGF Capital.