Knaresborough, North Yorkshire-based modular housebuilder ilke Homes said it raised £100 million from new and existing shareholders following successive years of triple-digit growth.
It said the round is being led by funds managed by affiliates of Fortress Investment Group LLC.
Existing investors TDR Capital and Sun Capital also subscribed to ilke Homes’ latest fundraising round, which was arranged by investment bank Citigroup.
The new funding will help the company to significantly scale-up its operations and open a new manufacturing facility that, once operational, will increase the company’s output capacity to 4,000 homes a year, creating over 1,000 new jobs in the UK.
The investment will also allow the company to invest heavily in automating more of its manufacturing processes to further drive productivity.
This will in turn enable ilke to secure more sites and expand its ‘package deal’ strategy, which offers full development service of land, infrastructure and homes in a rapidly growing market.
ilke Homes said it is now delivering over 1,000 homes a year and has secured a pipeline of over 4,000 homes.
Rahul Ahuja, Co-head of European Credit at Fortress Investment Group, said: “We are excited about our investment in ilke Homes.
“We see ilke Homes as the UK market leader in the manufacturing of modular housing and believe the company is uniquely positioned to increase the availability of high quality affordable housing in the UK while accelerating the transition to net zero.”
Jonathan Mitchell, partner at TDR Capital, an existing investor in ilke Homes, said: “The success of ilke Homes’ capital raise in the context of the difficult current funding environment is testament to its innovative business model and dedicated management team. Having achieved triple digit growth across the group for successive years, ilke Homes is strongly positioned and capitalised to deliver in a market with strong long term fundamentals.”
ilke Homes CEO Giles Carter said: “Our latest fundraise demonstrates that the private sector is increasingly recognising the investment case for change. With the race to net-zero well and truly underway, the next few years will be a decisive time in the history of housebuilding, so it’s important that true market disruptors are empowered to play a leading role.
“Having pioneered a zero-carbon, zero energy bills solution in partnership with Octopus Energy and Gresham House, the new monies will allow us to roll out our proven concept across the country and shield consumers from the cost-of-living crisis. By investing to increase our manufacturing capacity, we will also create hundreds of skilled, green jobs.”