The fundraise was split between £30m debt from government agency Homes England and £30m of equity from multiple new investors.
Affordable housing provider, The Guinness Partnership, is one of the new equity investors. It is also a customer of ilke Homes having signed two deals in the last year for sites that will deliver 250 factory-built homes.
Ilke’s main investor TDR Capita has also injected further equity, supported by Middleton Enterprises and private equity firm Sun Capital taking equity stakes.
The £30m debt facility from Homes England’s Home Building Fund comes after the Government’s housing agency invested an initial £30m into ilke Homes back in 2019.
This handout marked the first time the agency had ever directly invested to boost an offsite manufacturer’s production capacity.
Harry Swales, chief investment officer at Homes England, said: “Manufacturers like ilke Homes are vital if developers are to build new sustainable homes at the pace and scale the country needs. This debt facility from the Home Building Fund shows our commitment in increasing productivity and efficiency in construction to meet government’s housing delivery ambitions.”
Stephen Stone, a board member of ilke Homes, said: “This announcement proves that there is a shared ambition among the public and private sectors to find innovative solutions to structural issues that have dogged the construction and housebuilding industries for decades.
“This new funding will help us create hundreds more highly-skilled, green jobs for an economy that is gearing up for a Green Industrial Revolution.”
He added the funding would be transformational for ilke Homes, allowing it to scale-up production and accelerate capacity to deliver up to eight homes a day, up from two today – all helping to bring down manufacturing costs in the process.
The firm will also invest in more sites and expand its ‘package deal’ strategy, which offers full development service of site, infrastructure and homes in a rapidly growing market.