This is an untapped £10 Billion+ Opportunity
Britain’s housing shortage offers one of the best business opportunities for many years, every year an extra 100,000 new affordable homes are needed but are not being built – the backlog is over a million homes! Just a small percentage of this market is a very profitable business.
Faster, Better, Cheaper & Greener
The company with an alternative way of supplying housing at the speed, quality and price required by the customers will easily attract sales and rentals.
Why is there a 100,000 short fall in housing development?
Housing is still being built in the same way it has been built for many years, these methods of construction are inefficient, slow, expensive and subject to the effects of weather during the construction phases. There are also shortages of the right skilled labour and materials. In addition, the larger housebuilders have to deliver the maximum value to their shareholders so they are unwilling to build out all the land they control.
Our Offsite Construction Solutions to the housing shortage
We have studied this problem and concluded that the answer is to create factories that manufacture housing on an assembly line much the same as Henry Ford did with motor cars. Using standardisation of components, we can bring down the cost of the housing unit and as the ground works are being prepared while the building is being manufactured offsite the time to occupation is halved – saving interest costs and faster to market, typically within 6 weeks.
Benefits of Offsite Modular Construction
Because we manufacture inside factories we can control timescales and quality, we don’t have to stop work due to the rain or cold, everyone works in a nice clean environment. Our Housing is built as a number of modules of a standard size which are easily transported to the development site on trucks, then they are installed on the plot in as little as 48 hours.
Multiple Target markets
Our customers will range from the “End-User” (The Public) to other housebuilders (The Trade) because our aim is simply to reduce construction time and cost resulting in what David Cameron characterised as “Housing that ordinary working people can afford to buy”.
Company Overview
We have already set up companies, both private and public, to begin the operation and we have several factories earmarked for acquisition.
Products and Services
We have prepared our plans to be able to offer housing of all types; Blocks of Flats and Houses that can be used for typical domestic occupation and can be subtly amended to suit the student, hotel, holiday accommodation and care home markets. We will also offer a full design service where we can amend existing planning permission so that our offsite modular construction can be used in the place of traditional methods.
Competition
We are working to avoid the obvious competition from existing large and small housebuilders who are currently supplying the market with about 150,000 homes a year. To achieve this we are targeting only the smaller development sites so that we can build out every site we are offered (no land banking).
Milestones
We have carried out Intensive Research into the industry over the last 18 months and secured the services of all the key skilled and experienced people and companies we require to become a market leader. We also have a prototype two-bedroom house documented and photographed to prove the concept that has been designed by some of the most experienced people in the offsite construction industry.
Marketing and Sales Plan
We plan to use the internet extensively to mobilise our network to secure land and new customers, we have a complete in-house internet marketing and construction company in place and massive databases of the UK property industry available to us.
Our own Build-to-Rent or Build-to-Sell portfolio
We also plan to use part of our production of housing on development sites we own, this will give us a dynamic increase in profits and we will benefit from construction income and capital appreciation of the land. The resulting portfolio can be retained as investment property or sold into the market.
Management Team
We have taken the time to investigate the market to find the key individuals required to run the operation, some will be directly employed and others will be strategic joint ventures or consultancy based.
Financial summary
In year one we project a £5 million profit on a turnover of £25 million, this 20% profit margin is calculated against a production of 500 homes – we feel that our production can be as much as double this figure in the first year and also that we can increase the profit margin through efficiencies of bulk buying and standardisation.
Funding Requirements
We are initially looking to raise equity finance of £2.5 million through the sale of 25% of the company shares and a further £2.5 million through the issuance of a high yielding bond.
Use of funds
We would use this initial financing to purchase the first factory, acquire the necessary equipment and plant, acquire residential development land and for the first year working capital requirement.
Exit or 2nd Round & Subsequent Investment Strategy
We are in the process of listing our Public Limited Company which will acquire the entire operation upon a successful float on the London Stock Exchange. This will give us a suitable platform to expand the business and offer our investors the opportunity to exit or to further participate in investment rounds.
For more details or to obtain an Information Memorandum please contact This email address is being protected from spambots. You need JavaScript enabled to view it.