Leading modular builder, TopHat, has raised £70million from new and existing shareholders as the opening of Europe’s largest modular housing factory draws near. The site will be capable of manufacturing up to 4,000 ultra-low-carbon homes each year.
FTSE-100 housebuilder, Persimmon, and institutional investor, Aviva, through its Aviva Capital Partners unit, have each made a substantial investment in the company, a major show of confidence in the fast-growing modular housing sector.
Existing shareholders, Goldman Sachs Asset Management, also contributed to the latest fundraising round, while Homes England, which has funded TopHat’s development at Kitchener Barracks in Chatham, continues to explore the potential for additional support as part of its ongoing commitment to the sector.
Persimmon intends to embrace TopHat’s manufacturing techniques to complement its existing Space4 timber frame product, drive further build efficiencies and expand its product offering to customers, all while supporting moves to meet the Future Homes Standard.
Homes England’s support during the funding process was vital to its successful outcome, and it remains committed to helping to catalyse this still-nascent sector in order to improve the supply-side economics and sustainability of housebuilding.
A recent report from the House of Lords’ Built Environment Committee suggested that modular housing will be instrumental in tackling the 4.3million shortfall in housing, speeding up development and improving the quality of new-build homes.
This successful fundraising will help to cement TopHat’s leadership of the modular homebuilding sector. In addition to its current output of up to 800 homes a year from its first factory in Derby, it will begin production from its cutting-edge 650,000 square feet manufacturing facility in Corby, Northampton in 2024. The new factory will employ 1,000 people, many of whom will be apprentices or employees entering the sector for the first time, working alongside the most advanced housebuilding robots operating at scale in the UK.
Every home manufactured by TopHat is capable of being zero-carbon, meaning no operational emissions are produced from heating and utilities. This is achieved through exceptional building fabric and the incorporation of low-carbon technologies such as solar panels and battery storage. When combined, these efficiencies will help to drastically reduce a home’s carbon footprint while helping to cut energy bills, which have reached record highs over the last year.
Jordan Rosenhaus, CEO and founder at TopHat, said: “Today’s announcement is a testament to the innovative approach that TopHat continues to take to house building and marks a step-change for the future of housing. It has been clear for some time that designing and building green, beautiful homes in factories is a critical part of solving the housing crisis – and today’s announcement will enable TopHat to reach the scale where the new generation of modular homes can be made available to everyone.”
Dean Finch, group chief executive at Persimmon, said: “Persimmon is delighted to announce this partnership, combining the country’s most innovative modular manufacturer with the most cost-effective volume housebuilder.”
“This investment provides Persimmon with guaranteed access to very energy-efficient volumetric modular units as well as TopHat’s innovative brick façade to use with our Space4 timber frame products. This will provide further build efficiencies, manage the growing challenge of labour shortages in key trades and expand our product range for customers. Combining our complementary industry-leading capabilities alongside other significant new investments makes me excited for the opportunities ahead.”
John Cummins, CEO of Aviva Capital Partners, said: “Aviva is using its financial strength to invest in the sustainable infrastructure and real estate which are central to the UK’s net zero transition. TopHat is a pioneer of low-carbon homes and this investment will make sustainable housing more widely available, making a difference to communities and providing a retirement income for our customers.”
Harry Swales, chief investment officer at Homes England, said: “Modern Methods of Construction have the potential to revolutionise the housing sector, driving greater efficiency and productivity, reducing carbon emissions, decreasing disruption caused by construction and increasing consumer choice.”
“As the government’s housing and regeneration agency, we’re committed to increasing the use of MMC and supporting our partners in the sector to invest in it. This investment from TopHat, Persimmon and Aviva Capital is not only an important step forward for TopHat, but really encouraging for the wider sector.”
