Innovative £90 million investment deal bringing together Urban Splash and Japanese housebuilder

We facilitated a £90m investment boost to the UK housing market by bringing together Japan’s biggest housebuilder and Manchester-based Urban Splash. The deal is set to deliver thousands of new homes, built using modern methods of construction

 

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Across the UK

£90 mn

 

Ambition

Urban Splash ‘House’, operating alongside the Urban Splash Group, required JLL’s assistance to secure investors to expand its modular housebuilding operation in the UK. What was needed was an innovative partnership that could bring together the private and public sector to support the construction of thousands of new family homes.

How we worked together

It was important to put together working relationships that would allow House, Urban Splash’s housebuilding business, to achieve its aim of increasing modular housing delivery to allow more people to own their own homes and in a shorter build time. 

As one of the most ground-breaking housebuilders globally with their offsite construction methods, innovative design and pioneering technology to enhance productivity, JLL considered Sekisui House the perfect partner to fulfil both parties’ vision to radically address the UK’s housing shortage. This complex deal required us to work collaboratively and to look outside traditional solutions. We used our global capital insights and knowledge of the residential and public sectors to identify Sekisui House, and Homes England as potential partners.

 

Challenges

Bringing together Urban Splash and Seksui House meant an innovative financial structure was required to meet the differing needs of the various partners. JLL coordinated all aspects of the transaction, drawing on various teams for a unique solution, which included debt and equity funding and as lead financial advisor, JLL led on all aspects of the legal and due diligence processes.

The transaction levered JLL’s global network, public sector connectivity as well as our award-winning UK residential business and multidisciplinary teams. 
 

Achieved

Our insight and market knowledge allowed us to structure and execute a £90m investment deal that brought together private and public investors, with an alignment of ambitions.

In total we spent several years working with Sekisui House, having first discussed their investment appetite in 2014, and 16 months advising Urban Splash, structuring a complex £90 million deal to fund a comprehensive modular construction programme with sustainability at its heart. We coordinated all aspects of the transaction, bringing together our various teams to find a unique solution, which included debt and equity funding. As lead financial advisor, JLL also led on all aspects of the legal and due diligence processes.

The deal allows House to deliver thousands of new modular homes across England. Sekisui House are initially investing c.£22 million for a 35 percent equity stake in the House business, whilst Homes England are providing £30 million of equity and debt funding.