TopHat, the modular house builder, has raised £70 mln (€80 mln) from new and existing shareholders as the company prepares to open Europe’s largest modular housing factory.
FTSE-100 housebuilder Persimmon and institutional investor Aviva, through its Aviva Capital Partners unit, have each made a substantial investment in the company.
Existing shareholders Goldman Sachs Asset Management also subscribed to TopHat’s latest fundraising round.
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 aims to adopt the innovative manufacturing techniques used by TopHat to complement its existing Space4 timber frame product.
Aviva Capital Partners, Aviva plc’s newly launched in-house capital unit which originates infrastructure assets using Aviva group capital, has invested to bolster its sustainable community strategy.
Ramping up the delivery of homes will be vital to address chronic housing shortages across the UK, where there is a shortfall of 4.3 million homes according to some estimates.
The new TopHat facility is expected to support the manufacture of up to 4,000 ultra low-carbon homes a year.
It will begin production from its site in Corby, Northampton in 2024.
Jordan Rosenhaus, CEO and founder at TopHat, said: 'Today’s announcement is 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.'
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.'
TopHat is already working with some of the UK’s biggest developers and investors, including BoKlok, Man Group and Urban & Civic.
