PE firm provides financial foundations for ambitious new housebuilder

Avant Homes’ former chief executive has launched a new housebuilder, Honey, and agreed deals for two developments in South Yorkshire and Derbyshire.

Mark Mitchell’s new venture is backed by private equity firm Alchemy Partners, through its £937m Special Opportunities Fund IV.

Alchemy intends to back Mitchell’s vision and support Honey through “organic growth and targeted acquisitions”.

Mitchell spent 16 years at Avant Homes, including nearly a decade as its managing director in Yorkshire, then as chief operating officer and chief executive.

He left in January, nine months after house builder Berkeley DeVeer had taken over Avant. Alchemy had backed Avant for several years before exiting in the sale to Berkley DeVeer.

Thomas Boszko, a partner at Alchemy Partners, said: “Having worked with Mark previously we are fully aware of his talent, capability and ambition. With Honey, we will be delivering a distinct proposition which we know there is a very strong demand for.”

Honey has initially agreed to acquire two developments, in South Yorkshire and Derbyshire, although the exact locations aren’t being disclosed yet. It plans to develop 141 units across both sites, which will have a combined gross development value (GDV) of £40m.

Honey is also in “advanced discussions” on two other sites which could deliver 148 homes with a combined GDV of £47m.

Mitchell, chief execuitve of Sheffield-based Honey, said: “There is a clear gap in the housing market for the type of properties we’re going to build. Designing the house types has been a real labour of love because we want to provide people with homes purposely created for them that will set new standards.

“It’s very pleasing to be working with Alchemy again. We are completely aligned in how we want to achieve our growth objectives which is through outstanding product design, smart land buying and excellent customer service.”