House builder Persimmon and institutional investor Aviva have each made a substantial investment in volumetric modular house builder.
TopHat has been trading since 2016 with shareholders led by Goldman Sachs investing £130m in the business up to the latest fundraise. The investment bank also took part in the latest fundraising round.
The modular business is still operating at a loss according to the last published accounts but is aiming for “strong profitability” within the next three years as
Persimmon aims to embrace manufacturing techniques used by TopHat to complement its existing Space4 timber frame product, drive further build efficiencies while expanding its product offering to customers and support moves to meet the Future Homes Standard.
The fundraise will help TopHat ramp up production. In addition to its current output of up to 800 homes a year from its first factory in Derby, it will begin production from its cutting-edge 650,000 sq ft manufacturing facility in Corby, Northampton in 2024.
The new factory will employ 1,000 people, many of whom will be apprentices or employees entering the sector for the first time, working alongside the most advanced house building robots operating at scale in the UK.
Jordan Rosenhaus, CEO and Founder at TopHat, said: “Today’s announcement is testament to the innovative approach that TopHat continues to take to house building and marks a step-change for the future of housing.
“It has been clear for some time that designing and building green, beautiful homes in factories is a critical part of solving the housing crisis – and today’s announcement will enable TopHat to reach the scale where the new generation of modular homes can be made available to everyone.”
Dean Finch, Group Chief Executive at Persimmon, said: “Persimmon is delighted to announce this partnership, combining the country’s most innovative modular manufacturer with the most cost-effective volume house builder.
“This investment provides Persimmon with guaranteed access to very energy-efficient volumetric modular units as well as TopHat’s innovative brick façade to use with our Space4 timber frame products.
“This will provide further build efficiencies, manage the growing challenge of labour shortages in key trades and expand our product range for customers. Combining our complementary industry-leading capabilities alongside other significant new investment makes me excited for the opportunities ahead.”
TopHat is presently working with some of the UK’s biggest developers and investors, including BoKlok, Man Group and Urban & Civic.
