Goldman Sachs-backed housebuilder to open second modular factory

Goldman Sachs-backed housebuilder TopHat has announced it will open its second modular housing factory, which it says will be the biggest in Europe. 

The new TopHat factory promises to produce 4,000 homes every year and use the latest robotics. It also says it will create 1,000 jobs across a range of roles and a training academy. 

The factory, to be located in Corby, will be 650,000 sq feet, or the size of 11 football pitches, and the homes it produces are expected to be zero-carbon. 

This is TopHat’s second factory, in addition to its existing facility in Derby which can produce up to 800 homes a year.

TopHat’s investment comes after private investors and the government have thrown their weight behind modern methods of construction, with TopHat having benefitted from a £75m investment from Goldman Sachs in 2019.

However, there have recently been several examples of MMC ventures falling into difficulty in recent weeks. 

Last month House by Urban Splash went into administration and in April concrete frame specialist JRL saved Caledonian Modular by buying up the modular housebuilder. Caledonian Modular went into administration three weeks before the buy out after 60 years of trading. 

Partnerships housebuilder Countryside announced in April it was cutting staff and reviewing “all options” for its MMC factories after the business did not perform as well as expected. 

Construction on the factory is expected to begin later this year and start producing its first homes by the end of next year. The business declined to say how much it will be investing in the facility.

It will be the ‘anchor tenant’ in a new Magna Park site in Corby being developed by global logistics development manager GLP.

Jordan Rosenhaus, chief executive and founder of TopHat said: “Our homes are designed to be beautiful and green, being low-carbon to build and much cheaper to run. TopHat is playing a leading role in transforming home building in the UK, improving quality, reducing costs and protecting the environment.” 

James Atkinson, development director of GLP said: “We are delighted that TopHat will be the anchor tenant for our new Magna Park in Corby bringing not only investment and jobs to the local community but also delivering innovative new homes which will be an important part of our future.”