Persimmon and Aviva acquire stakes in Goldman Sachs-backed modular firm

Aviva said its investment will support the new factory. “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,” said John Cummins, chief executive of Aviva Capital Partners. 

Persimmon said the investment will give it “guaranteed access” to TopHat’s brick facade product and its “highly energy-efficient” modular homes. 

Dean Finch, chief executive at Persimmon, said: “The combination of our complementary industry-leading capabilities with significant new investment will create many exciting opportunities for both businesses in the years ahead.”

In total, Derby-based TopHat has raised £70m from the new fundraising. Its majority shareholder Goldman Sachs also invested in the latest round. The US bank spent £75m on an initial investment in the modular firm in 2019. 

TopHat also said this week that Homes England “continues to explore the potential for additional support as part of its ongoing commitment to the sector”.

In 2019, Homes England invested £30m in private equity-owned modular specialist Ilke Homes. 

Like other large offsite firms, TopHat has racked up significant losses since its inception. In its last reported full year, the group posted a pre-tax loss of £19.4m. However the loss narrowed compared to the prior year’s pre-tax loss of £21.3m.

Jordan Rosenhaus, TopHat’s chief executive and founder, said the new investment “marks a step change for the future of housing”.

He added that the funding will “enable TopHat to reach the scale where the new generation of modular homes can be made available to everyone”. 

TopHat, which was founded in 2016, has previously delivered homes for Home Group and has deals with BoKlok – the joint venture between Skanska and Ikea – and Urban & Civic.

Among TopHat’s board members is former long-serving Notting Hill Genesis boss, Kate Davies.