Places for People’s fund manager forms £390m joint venture to build 1,200 homes

Leverage will be used on a scheme-by-scheme basis. Igloo Regeneration, a developer acquired by PfP Capital in January, will be responsible for developing the schemes.

The schemes will be master planned by PfP Igloo, a long-term partnership between PfP Capital and Igloo Regeneration, in collaboration with local authority counterparties.

The joint venture will use Igloo Regeneration’s proprietary Footprint methodology, a model for reviewing the environmental impact of design and investment decisions.

The first scheme to be brought forward will be 78 townhouses as part of a 400-home development at Dundashill in Glasgow.

The completed development, a mix of two, three and four-bedroom homes for sale, will be sustainable and of modular construction.

Eighty per cent of the low-energy properties will target an Energy Performance Certificate (EPC) Band A rating.

A further nine PfP Igloo sites, including Nottingham and Newcastle, are in the pipeline.

John Tatham, finance director at PfP Capital and an Igloo board member, said: “This partnership will accelerate the development of over 1,200 highly sustainable homes across the UK, at a time when the pace of new-home delivery is rapidly declining.

“Residential regeneration, and community-led regeneration in particular, is key to revitalising parts of the UK that have suffered from underinvestment.

“Through bringing together a highly established equity investor, fund manager and award-winning developer, and leveraging long-established local authority relationships, the joint venture will deliver tangible social value alongside competitive and stable long-term investment returns from day one.”

Rachel Miller, investment director at HGP, said: “In PfP Capital and Igloo we have a partner that shares both our social impact and sustainability values, and our desire to accelerate the much-needed delivery of quality homes across the UK.

“The joint venture reflects HGP’s ambition to support the UK’s diverse housing need through strategic partnerships with experienced developers, and will see significant capital deployed into the transformation of urban brownfield sites in regional cities.”

Peter Connolly, chief executive of Igloo, said: “Dundashill is an excellent example of the low-carbon, sustainable homes that should be a blueprint for the UK’s future housing delivery.

“Connected to local ecology, cycle and walkways and nearby amenities, the joint venture will bring forward these schemes in partnership with existing communities, using the Igloo Footprint methodology to ensure that they enrich people’s lives and the planet.”

PfP Capital has delivered 2,500 mixed-tenured homes across England and Scotland to date, with a further 1,700 under development or in the pipeline.