Ilke Homes raises £100m in equity investment

Modular housebuilder Ilke Homes has raised £100m in equity investment from new and existing shareholders, which it expects to boost housing delivery. 

The firm believed the sum was the largest-ever raised by a UK modular housebuilder and stated it would be “transformational” for its business. 

Global investment manager Fortress Investment Group, which has $46bn (about £40bn) of assets under management, is in charge of the funds leading the round. 

Ilke said the equity will help it open a new manufacturing facility, “significantly scale-up its operations” and invest heavily in automating more of its manufacturing processes. 

It plans to increase its output capacity to 4,000 homes a year, creating more than 1,000 new jobs in the UK. 

The move comes after successive years of triple-digit growth for Ilke. It says it has seen revenue grow by 150% year-on-year. However, in its most recent published results, to March 2021, it reported a £41.2m loss, on turnover of £27.5m.

Existing investors TDR Capital and Sun Capital, arranged by investment bank Citigroup, also subscribed to the round. 

Jonathan Mitchell, partner at TDR Capital, 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 works with several well-known investors and developers, including the Vistry Group and housing association Places for People. 

This year it announced it was partnering with utilities firm Octopus Energy to deliver homes with zero energy bills. 

Giles Carter, chief executive of Ilke Homes, 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.”

Carter added: “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.”