Man Group’s global private market arm is investing £31m (€34m) in a UK development venture with modular housing company ilke Homes.
Man GPM and ilke Homes have agreed the deal for a 14.6-acre site in Grantham which will be used to deliver 227 factory-built homes to provide a range of homeownership and rental options including affordable rent.
Man GPM said the investment is in line with its community housing strategy which seeks to achieve the dual objectives of providing both social and financial returns, ”addressing the housing crisis in the UK by building homes that are affordable to households”.
Man Group will act as on-site developer and ilke Homes will manufacture the homes offsite and transport to Grantham.
Shamez Alibhai, head of community housing and portfolio manager at Man GPM, said: “This investment demonstrates that it is possible to deliver high-quality housing, using state of the art construction methods while also creating homes that are affordable to local residents.
“The COVID-19 pandemic has highlighted the importance of essential workers and the role they play in our everyday lives. Investment in socially responsible projects such as this one is fundamental to the Man GPM community housing strategy and its aim of investing in projects that positively impact the lives of residents and the broader community.”
Matthew Bench, executive director of partnerships at ilke Homes, said: “It’s a huge vote of confidence in modern methods of construction from the institutional marketplace and it’s fantastic that Man GPM are spearheading that investment.”
Ian Jackson, investment director, community housing at Man GPM, said: “We’re delighted to have completed our first investment in modular housing with ilke Homes, and one of the largest investments in modular housing in the United Kingdom to date.
“The overall design and quality of the homes should deliver not just high quality, energy-efficient affordable housing, but a community for families to call their own. We aim to deliver more affordable homes using modular construction, which we believe is a great housing product, and the future of the residential housing industry.”
To read the digital edition of the latest IPE Real Assets magazine click here.
