Millwood Designer Homes has secured a £10m investment to accelerate its housebuilding programme across Sussex, Kent and Surrey.
Managing director John Elliott says that this investment will spark a substantial growth for the company, allowing it to bring forward more sites over the next four years as the housing market continues to recover.
Says John: “The industry is extremely capital intensive and since banks introduced new criteria following the crash it is necessary for housebuilders to find around 35% of the project cost up front. In simple terms, if we bought a site for £2m and build costs were £3m then we would have to find £1.4m on the first day. Obviously such capital requirements are very restrictive meaning that our rate of growth is very subdued.”
However, that’s all about to change, thanks to a London-based property investment company.
John added: “We have raised £10m, with more funds available if needed. This is going to make a huge difference to the company. “We have an exciting future ahead of us leading to projected sales by 2017 of £60m.
“Despite this injection of capital, nothing within the company will change, except that we will have the funds to back up our purchasing aspirations.
Millwood currently has a range of properties in locations throughout Kent, Surrey and Sussex. For more information about any of the developments, please call 01732 770991 or visit the company website at www.millwooddesignerhomes.co.uk