Equity funding

HGP invests capital from its Investors and has discretion on investments within our fund mandate, resulting in a fast decision-making process to allow our partners to be agile in their approach.

How we work

We invest equity on a site specific or multi-site basis, sharing risk with our partner and helping them scale housing delivery at a faster pace than they otherwise could.

HGP does not charge interest or fees. Our tailored profit-sharing arrangement rewards the developer with a greater share of profit than the share of equity they put in.

Our partner retains responsibility for delivery of the project.

Third party senior debt is raised from a range of funders to support the project.

Types of partnership

HGP can invest: up to £30m of equity in individual schemes.

Regional Growth Initiatives and Strategic Partnerships, allow HGP to invest up to £60m of equity with larger, established developers across a pipeline of sites.

We can also consider larger investments subject to investor approval.

Regional Growth Initiative & Strategic Partnerships

HGP’s Regional Growth Initiative (‘RGI’) and Strategic Partnerships were established with the purpose of providing a longer-term equity commitment to developers & housebuilders to help realise their growth plans. These programmatic JVs provide ambitious management teams with access to institutional equity to fund multi-site growth plans, allowing partners to stretch their own equity. To date HGP has committed £220m and invested £73 million under the RGI & Strategic Partnership structures, supporting 12 developers and housebuilders to deliver 1,700 homes.

Investment parameters

HGP invests in opportunities that usually involve construction management or a third-party main contractor. HGP seeks to exit post completion or post stabilisation, depending on the project.

HGP invests in residential-led schemes, including houses and apartments for sale, build to rent and co-living, affordable housing, regeneration, student accommodation, retirement living and care homes.

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