Design-led SME housebuilder Backhouse has secured a GBP50 million investment from alternative asset manager Cheyne Capital to support major growth plans for the company in 2019 and beyond.
This new investment by Cheyne Real Estate Credit (CRECH) Fund V – Opportunistic takes the form of a joint venture, giving Backhouse access to the capital required for the next phase of its expansion as it pursues its ambition of delivering 500 houses a year by 2022.
It follows previously-formed joint ventures with the Housing Growth Partnership on two of Backhouse’s current sites in Castle Cary and Westbury. Rob Turner of Cheyne Capital will join the Backhouse board as a non-executive director, as will former advisers to Backhouse, Richard Jones and Anthony Henry-Lyons.
Launched in 2016 and headquartered near Bath, Backhouse is geographically focused on providing housing for the South West region. Founded by former Deutsche Bank and Citigroup commodities banker Theodore Backhouse, the management team includes Managing Director Steve Russell, formerly MD at Devonshire Homes, and Head of Operations Kevin Moore, previously Head of UK operations at Zero C.
Initially financed by private investors, the company has grown rapidly since launch. The new investment will also result in Backhouse’s active recruitment across all relevant disciplines in its head office and on site to support its growing portfolio of projects.
As part of the investment, a portion of the company will be put into a share scheme for employees. Backhouse believes this differentiates it in the SME housebuilding space and demonstrates its commitment to recruiting and retaining the very best talent in the industry.
Theo Backhouse says: “This is a very exciting moment in the history of the organisation. The investment is a strong endorsement of the team we have put together and what we have achieved to date. There is a fantastic opportunity for SME housebuilders to grow as the UK looks to achieve its ambitious housebuilding targets and we are delighted to be working with Cheyne Capital as we embark on a phase of significant growth. “
“We believe this partnership and our design-led ethos will pay dividends as the market sees new build volumes grow and choice increase for buyers.”
Rob Turner of Cheyne Capital says: “We are excited to be supporting another high-quality housebuilding business in the UK and this investment is testament to what the Backhouse team has already achieved.”
“This joint venture once again demonstrates Cheyne’s ability to provide innovative, flexible and bespoke financing solutions to organisations focused on increasing the supply of mid-market housing in the UK with strong management teams and robust growth plans.”
