GCV launches £2m investment round with modular housing manufacturer CoreHaus
Innovative modular housing manufacturer CoreHaus has launched its EIS-eligible investment opportunity with GCV as the company looks to scale operations, build on their traction to date and increase its £23 million client pipeline.
The winner of the 2022 Constructing Excellence Modern Methods of Construction Award, CoreHaus is re-inventing affordable housing delivery through its flexible hybridised construction process and innovative time, cost and energy-efficient approach.
CoreHaus has experienced strong traction since launch, having expanded its premises, more than doubled the team’s headcount and delivered a number of successful client developments throughout the North of England.
The UK government increased their focus on modern methods of construction (MMC) in recent years as demand in the housing market has rapidly outstripped supply and vacancy rates have continued to remain below 1%.
To ensure industry requirements align with CoreHaus’ proposition, the company’s product and process has been designed to address four key issues within the market:
- UK Housing Crisis - the UK is in desperate need of new homes. The rate of house building in the UK still needs to increase by 25% to meet the Government’s target to build 300,000 new homes per annum.
- Skills Shortage - the traditional UK construction sector already faces an acute skills shortage, with the complexities of Brexit and a two year pandemic compounding the situation further. This reduced labour force is slowing the rate of construction growth.
- Build Quality - the quality of new build homes is under increasing scrutiny. One distinct advantage of modular housing is that the majority of the traditionally problematic work inside the house has already been undertaken during the off-site build phase in factory conditions with strict quality controls.
- Sustainable Construction - pressure across the sector to identify more sustainable methods of construction is increasing with tightening environmental legislation. Offsite manufacturing allows housebuilders to monitor wastage under strict conditions and incorporate more environmentally-friendly materials and processes in a controlled environment.
This EIS-eligible investment round
In this investment round, CoreHaus is looking to continue on its growth path: expanding the team, scaling operations and further increasing the company’s current £23 million pipeline.
With £1 million of investment already committed and in place from Fusion21, investors in this round have the opportunity to co-invest alongside both experienced, private investors and institutional investors.
This opportunity targets a 4.81x money-on-money return upon exit, and being EIS-eligible, offers investors the full range of tax reliefs associated with the wrapper (all tax reliefs are dependent on individual tax circumstances).
To find out more about this opportunity or to download the Investment Memorandum, visit the CoreHaus investment opportunity page.