If you're a member of our GrowthFunders co-investment platform (and if you're not, sign up for free here!), you'll be aware that the Carlton SPV1 Chilton, an exclusive residential property development, has recently moved into close out after becoming fully funded at a quantum of £400,000 with 47 days still to go.
This residential property development investment opportunity enabled each investor to co-invest in a residential development scheme and share in the development profit, targeting a 1.5x multiple of money return.
What’s also been particularly attractive to investors with Chilton is the ability to see a return in a short to medium time scale, as the opportunity is targeting an 18 to 22 month build and sales programme.
Co-investing for both growth and impact
The round was closed out by one corporate investor, Fusion21, and 17 online investors, including both sophisticated high net worth individuals from our G.Ventures investor club and a network of online retail investors, all of which have co-invested in this exciting opportunity.
Fusion 21 is a social enterprise business which provides procurement services and OJEU compliant frameworks to the education, blue light and social housing sectors.
Carlton SPV1 Chilton Limited (“SPV1”) is a special purpose vehicle setup to develop much needed homes in the County Durham area. The project will see the development of 14 luxury family homes, including three modular CoreHaus units, designed to give occupants 'super' flexibility in terms of both the way they live and the way in which their home can be changed or adapted to meet their future needs.
GCV originates investments across property, clean energy and high growth SMEs; impact driven investment opportunities are at the heart of everything we do. We are on a mission to make investing for financial growth and impact both exciting and accessible, underpinning the need to drive societal impact and enabling investors to co-invest in to property related investment opportunities - truly co-investing for both growth and impact.
Addressing the UK housing crisis
Sourcing investments like the Carlton SPV1 Chilton opportunity helps to address the current UK housing need, as well as meeting the needs of a growing market, focusing on ‘four pillars’ that support impact driven investments:
- Sustainable living and working
- Employment, skills and training
- Health, wellbeing and care
- Environment, energy and efficiency
A key driver for us is to deliver impact driven investment opportunities that generate jobs, skills and training in underserved markets. The Carlton SPV1 Chilton opportunity is a perfect example of us backing property projects that deliver much needed, low carbon homes, as well as creating jobs and skills.
One thing that is extremely important to us as a business is facilitating investment opportunities that have the potential to deliver sustainable investment growth alongside the ability to deliver positive social, economic and environmental benefits.
Introducing Carlton & Co: GCV’s development arm
Established in 2007, Carlton & Co is today the development arm that will develop this property-based investment opportunity structured by GCV. We know investors want to have the ability to diversify and invest not just in businesses and high growth SMEs, but also to invest in projects such as residential developments – that’s why our business models at GCV and Carlton & Co are so well aligned.
Carlton & Co is growing and we plan to recruit a range of positions from senior managers through to skilled site workers. The construction industry is facing a drastic skills shortage, and as such Carlton & Co is keen to address and support governmental training initiatives. This is in addition to establishing partnerships with universities in the region and local apprenticeship providers by recruiting experienced staff and apprenticeship-level teams into the business.
We plan to tackle the construction skills gap head on, creating a better future for the region, driving job creation and working with our employees to make the most of their potential.
The development will see the construction of 14 much needed homes, and this type of opportunity will be the first of many for GCV & Carlton & Co, who will bring much needed homes and jobs to the region.
Supporting the resurrection of SME builders
The recession, which occurred nearly 10 years ago, pretty much saw the wipe out of small scale and SME housing developers. The most recent Budget delivered by Philip Hammond highlighted that the government will unleash a major build programme to deliver 300,000 homes a year, warning that there is no “single magic bullet” to increase housing supply and the government would not simply “pour money in”.
Ministers want to speed up housing developments where planning permission has been granted and give more help to smaller developers, enabling SMEs to fix the broken housing market.
However, to enable this to happen SME builders need to be able to access finance easily to develop out these sites - and the GCV offering does exactly that. Allowing property developers to access alternative sources of finance at affordable rates, we also enable investors to co-invest in investment opportunities that not only deliver superior profit, but also have a clear focus on making a genuine impact.