Modular housebuilder grows order book to more than £200m with £44m deal
Modular housebuilder Ilke Homes has agreed a £44m deal with a for-profit housing association, pushing its order book to more than £200m.
Ilke will deliver 153 homes in Stanford-le-Hope, Essex for Resi Homes in a deal which will see it secure the land, obtain planning permission, manufacture the homes and develop the site.
The homes will be available for shared ownership and delivered via Resi Homes, a wholly owned for-profit registered provider of affordable housing owned by Real Estate Investment Trust (REIT) Resi LP.
Ilke Homes believes the demand for shared ownership in some local markets will increase due to the lowering of the Help to Buy equity scheme price cap from £600,000 to £437,600 in April.
The so-called “turnkey” deal means that Ilke Homes now has an order book in excess of £200m, to deliver around 1,000 modular units. It has built around 3,000 homes since it was formed in 2017 through a joint venture between housebuilder Keepmoat and modular company Elliott.
The latest announcement follows recent high-profile deals involving Ilke. In 2019 the off-site builder entered a £100m joint venture with housing association Places for People and in December announced a £31m deal for 227 homes with hedge fund Man Group.
Dave Sheridan, executive chairman of Ilke Homes, said: “Factory-built housing is a unique proposition for investors in that it can future-proof investments against government policy, help meet strict environmental, social and governance (ESG) criteria thanks to its green credentials, and allow for revenue streams to be accessed as quick as possible due to a significant reduction in construction programmes.”