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Homes England-backed modular builder in talks with 15 potential investors
Ilke Homes, a government-backed modular house builder, is in live talks with 15 potential investors as it fights to secure its future.
The North Yorkshire-based firm paused operations and put itself up for sale last week, saying its 4,200-home pipeline “will not be delivered” without a new owner or investor.
Inside Housing understands that the company is now confident it will secure a buyer after a four-day period in which the future of the business was at stake.
The private equity-owned firm, which secured £30m investment from government agency Homes England as recently as September 2021, has operated at a loss since its inception five years ago. It posted a loss of £37.2m for 2020-21.
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Ilke signed a £100m joint venture with housing association Places for People in 2019. The Guinness Partnership became an investor in the firm in 2021, purchasing a 4.3% stake in the company for £10m.
It has since agreed large deals with the housing association for schemes such as a 220-home development in Southend, Essex, announced last November.
The company blamed volatile economic conditions and issues with the planning system for its financial woes. Its land-led delivery model – in which the company buys land, secures planning permission and develops the site – left it vulnerable to delays and uncertainty over government policy and unable to make revenue quickly enough to stay afloat.
Ilke is the latest modular builder to experience issues with cash flow. Last month Legal & General announced that it would stop production at its giant modular factory due to weak demand, leaving Goldman Sachs-backed house builder TopHat as Ilke’s last remaining major competitor in the modular sector.
It also follows the collapse last year of House, a joint venture between developer Urban Splash, Japan’s Sekisui House and Homes England.
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