An Edinburgh-based firm has become the first Scottish organisation to secure funding from the Housing Growth Partnership, which is part of a drive to increase the supply of new homes in the UK by providing £100 million in capital to the housebuilding sector.
AMA Homes has secured £3 million to complete a 34-unit townhouse and apartment development at Shandon Garden in central Edinburgh.
The £100 million fund, which was launched in July 2015 as a partnership initiative between the UK Government and Lloyds Banking Group, will make around 50 investments and fund the building of 2,000 UK homes over the next three years.
In one of its first transactions, the Housing Growth Partnership has made an equity investment alongside AMA Homes, which has been at the forefront of Edinburgh’s conservation and redevelopment programme for the past 30 years.
Vic Hepburn, investment director for Scotland and the North East for the Housing Growth Partnership, said: “The supply of housing is a key concern in relation to the UK’s long-term prosperity and small and medium-sized housebuilders are fundamental in helping to close that gap and provide much needed city centre living accommodation.
“AMA Homes is a highly experienced operator, spanning 30 years in the industry, with a passion for cutting-edge design, innovation and quality workmanship. The business has a strong track record of building high-quality developments and this investment will support the completion of the Shandon Garden development, a former brownfield site, and help AMA to achieve its growth ambitions.
“Through this partnership we are committed to providing experienced housebuilders with the right capital to accelerate the supply of new homes in areas of high demand and under supply.”
Ali Afshar, joint managing director, AMA Homes, said: “We’ve had a great experience in working with the Housing Growth Partnership throughout this process. The team really took the time to understand our business strategy. We welcome this investment, which will help us to accelerate our growth plans while remaining in full control of the business.
“We are particularly proud of this development which has been carefully designed to ensure the aesthetics complement the existing colony style housing of the surround area.”
AMA Homes is the Housing Growth Partnership’s third deal following investments into Devonshire Homes in the South West and Campbell Buchanan in Cambridgeshire.