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Investment opportunity: CoreHaus

You can view the full investment opportunity on our main site by clicking here, or the button at the bottom of this post.

A collaborative venture between specialist procurement consortium, Fusion21 and specialist regeneration company, Carlton & Co promises to deliver the future of low carbon homes within the affordable housing sector with CoreHaus – an innovative social housing provider(?)

CoreHaus was formed as a direct result of a detailed research project which stemmed from the core operations of Fusion21. For more information on Fusion21, visit their website here.

The investment opportunity is both SEIS and EIS compliant. Find out more about tax efficient investments by clicking on the links in blue.

 

The Team

Fusion21’s Chief Executive, Dave Neilson, has come together with Craig Peterson and Norman Peterson, the Managing Director and CEO of Carlton & Co., respectively. Between them, they have a rich background of experience in house building, construction, procurement, and social enterprise.

The team are also joined by an invaluable group of advisors, including Professor Mohammed Arif, the Professor of Sustainability and Process Management at Salford University, whose main area of research is in off site construction.

 

The Problem

The economic crash had a devastating impact on the infrastructure of our country as a whole, far beyond the fall of the banks and subsequent recession that we witnessed. The private housebuilding sector, for example, was hit hard, with work being halted and employees being laid off. Unfortunately, this has created a legacy of problems, and although there has recently been a modest recovery in this sector, we are now experiencing major shortage of both skills and materials.

There are a number of other problems which exist in the affordable housing market at the current time, each as damaging as the next. For example, reduced availability of grants and rising bill costs are making it increasingly difficult for social housing providers to deliver in the UK. Also, demand is far outweighing delivery when it comes to new builds in this sector and the waiting lists are continuing to grow…and the problem is only getting worse.

"In England, we need to build 250,000 a year just to keep pace with our population. We're achieving less than half that, with just 112,630 homes built in the year to March 2014." - Grainia Long, CEO Chartered Institute of Housing.

Unfortunately, the social housing sector is not the only type of housing the UK is struggling with; there is a deficit of housing in general, which is why England and the rest of the UK need to significantly increase build rates. Rather than trying to blanket-fix this problem, solutions are needed which match specific markets and work to fix problems at their core.

This year, around 35,000 new, affordable homes will be built in the UK. However, demand is nearer 55,000. A unit shortfall per annum of 20,000 is a major problem which requires a transformational approach.

 

The Solution

CoreHaus enables faster build times, reduced costs, a better quality of build, and increased social value, by creating affordable housing with standardised designs, a modular core, and panelised shells (which are manufactured off site and assembled locally).

With CoreHaus, around 80% of the difficult build process, such as the bathrooms, WC (DDA compliant), kitchen, and M&E (mechanical and electrical engineering work) is handled in the factory.

Standardised designs mean that bulk procurement is possible, which addresses the materials shortage.

The part-volumetric and part-panelised makeup of CoreHaus means that efficient transportation in a top advantage. CoreHaus is dedicated to delivering a positive social, economic, and environmental impact to the UK.

 

Achievements-to-date

  • The CoreHaus product has been designed and developed
  • IP trademarked
  • Copyright on design
  • Private sites secured under contract
  • Supply chain in place

 

Exit Strategy

The team plan to exit via a strategic acquisition.

 

CTA: View the full CoreHaus by clicking the button below.
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Backed by

Growth Capital Ventures (GCV) is backed by funds managed by Maven Capital Partners, one of the UK’s leading private equity and alternative asset managers.