Yorkshire housebuilder secures £10m expansion funding

Yorkshire housebuilder Newett Homes is aiming to deliver more than 400 homes a year thanks to a £10m growth capital investment. 

Growth capital investor firm BGF has provided the investment to the family-owned housebuilder to help it develop its landbank of more than 3,000 plots. Last year Newett Homes built 71 homes. 

Will Newett, chief executive at the housebuilder, said: “Over the last 18 months we have laid solid foundations for growth, building up a substantial landbank and investing in talent across all levels of the business. 

“To deliver our strategy, we wanted a minority investment partner that recognised the potential of Newett Homes and had strong credentials in helping housebuilders to scale. We can’t wait to see what our business can achieve with BGF’s backing.”

Newett Homes, which was set up by Will Newett in 2016, and has so far built 138 properties, specialises in building three- to five-bedroom homes in locations across the Yorkshire region. 

Chris Boyes, BGF investor, who will join Newett Homes’ Board as a non-executive director, said: “This is a great opportunity for BGF to invest in a business that has a strong pedigree in housebuilding and is well primed for growth. Newett Homes has built up an impressive reputation for delivering homes in quality locations.”

The deal was led by Boyes and fellow BGF Yorkshire-team investor Linda Nguyenova.

John Cassie, former regional chair of Persimmon and non-executive chair of former BGF portfolio company Campion Homes, will also join Newett Homes, as non-executive chair. 

Newett Homes is currently selling homes at developments in Yorkshire, including The Brambles at Skelmanthorpe near Huddersfield, Brooklands at Thurlstone, near Sheffield and a new development, The Pastures at Harrogate. 

BGF, which was formed in 2011 and invests in firms in the UK as well as Ireland, has also invested in housing projects for Derbyshire-based Woodall Homes and Braidwater Group, based in Northern Ireland. 

Advisors to BGF on the Newett Homes transaction were Schofield Sweeney and The Tax Advisory Partnership, while Newett Homes were advised by Hill Dickinson.