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Homes England-backed modular housing JV calls in administrators
Modular housing joint venture (JV) Urban Splash House has called in administrators, which will see 160 staff being made redundant.
The company, which is a JV between developer Urban Splash, Japanese housebuilding giant Sekisui House and Homes England, appointed administrators from Teneo on Wednesday to oversee the process.
Adrian Berry, joint administrator and a senior managing director at Teneo, said: “This appointment follows various operational issues relating to the factory in Alfreton which have impacted the wider group.”
The organisation had 187 staff, with 151 working at its factory and most of the remainder working at its development sites, the administrators said.
A total of 140 positions at Urban Splash Modular Ltd and 20 of the 36 positions in the wider House business will be made redundant, the administrators said.
The business was established in 2018 when Urban Splash acquired the modular subsidiary of building materials distribution firm SIG reportedly for £1, which included its factory in Alfreton, Derbyshire.
Sekisui House took its stake in House three years ago with an initial investment of £22m, which also saw Homes England invest £30m of equity and debt funding.
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Among the schemes House has been working on is the high-profile Northstowe site in Cambridgeshire as part of a wider proposed 10,000-home development on land owned by Homes England. It was also working on the East Float scheme at Wirral Waters, Port Loop in Birmingham as part of a JV with Places for People, and 228 new homes at the Grappenhall Woods site in Warrington.
The administrators said it will now oversee completion and/or sale strategies for the development sites, while exploring sale options for the factory.
A statement from Urban Splash said: “The appointment of Teneo senior managing directors Adrian Berry and Daniel Smith to the company has no impact on the wider Urban Splash group or its operations, which continue to run successfully.”
Urban Splash said its shareholders own 48% of the House business, with Sekisui having 48% equity and Homes England a 4% stake.
In a statement, Homes England said: “We are aware that an administrator has been appointed. We remain committed to working with ambitious and innovative partners to help diversify the housing market and increase productivity.”
The full list of companies in administration are Urban Splash House Holdings Ltd, Urban Splash House Investments Ltd, Urban Splash House Ltd, Urban Splash Modular Ltd, Port Loop Holdings Ltd, Port Loop Ltd and Port Loop (Subco1) Ltd.
In its last reported full-year to the end of September 2020, Urban Splash House Holdings posted a loss of £12.7m on revenue of £10.7m.
It is the second major firm in the modular space to enter administration in just over two months after the collapse of Caledonian Modular. The Newark-based firm has since been acquired by construction company JRL Group.
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