Liverpool housebuilder Hassett Homes secures £6.75m investment in exchange for 35% of its equity. Tony McDonough reports
A Liverpool firm that builds upmarket homes has secured a fresh £6.75m cash injection.
In exchange for the money, investor TGF Capital will take a 35% stake in the business. Hassett founder Jamie Blennerhassett says the deal will enable the firm to access competitive senior debt markets.
This year Hassett, which is building homes in locations such as Aughton, Formby and Eccleston, expects to achieve sales of £11m. Mr Blennerhassett is targeting a turnover of £30m within three years.
Earlier this year Hassett moved into a new head office at Columbus Quay in Liverpool’s south docks to accommodate its growth. In July it started work on a £4.3m scheme in Formby to build nine large family homes.
Mr Blennerhassett said: “This is the natural extension of our relationship with TGF Capital. I’m delighted to have them as a board and shareholding partner.
“Having institutional-grade backing of this type puts us on a very firm footing as far as our future funding needs are concerned.
“The move will enable us to access up to £20m in low-cost finance to drive our site acquisition and development programme, as well as strengthening our corporate governance.”
The two companies have been working together for more than two years, with a mix of debt funding and development-specific equity. The decision to formalise the relationship at group level was the natural next step, added Steven Peck of TGF Capital.
“Having seen the quality of the management within the business and the quality of the houses it delivers, stepping up our involvement made perfect sense,” he explained. We bring a lot to the table and will be committed shareholders, keen to drive growth and performance over the long term.”
Glenville Walker acted on behalf of Hassett Homes on the transaction. Husband Forwood Morgan acted for TGF Capital.