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South coast: £25m deal boosts Bargate Homes' growth plan

12 November 2014
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Leading south coast housebuilder Bargate Homes has secured a £25m investment enabling its strategic expansion and a significant boost to the regional economy.

Prowting Investments plc, a family-backed private-equity firm well known within the housing industry, has taken a minority 30% shareholding in Fair Oak-based Bargate.

The investment allows Bargate to undertake larger developments across the region which not only boosts the south’s construction industry with more jobs, but also has wider economic implications by providing much-needed housing.

Bargate chairman Gerard Price said: “We were fortunate to secure a number of offers and while we didn’t admit it straightaway the Prowting family were our first choice as long-term investors. We share a very similar ethos in putting quality before quantity.

“Their investment together with a new revolving credit facility from bankers, The Royal Bank of Scotland, will allow the company to be a credible alternative to a national housebuilder in our area, something which I’m aware many landowners have been seeking for some time.

“The Prowting investment into the Bargate business plan, together with our banker's support is a huge vote of confidence in the whole Bargate team and what we have built up over the past seven years.”

Bargate has been building bespoke homes across the region for many years including Southampton, Winchester, Hambledon, Salisbury, Emsworth, Southbourne, Alton and Chandler's Ford. It’s known for its prestigious, sensitive developments such as St James Mews in Winchester and the former brewery site in Hambledon.

Price added: “The SME housebuilding sector has been almost decimated. Barriers to access finance together with a general shortage in smaller sites, has meant that builders in this sector have not been able to reach their capacity – so vital in meeting the shortage in housing.

“Both central government and regional development agencies now understand the need to support housebuilders, but the barriers still exist. Fortunately for us Prowting recognised our strength and ability and were willing to invest.”

Wendy Trott of Prowting Investments said: “This is an exciting investment for us. Bargate is a highly-respected housebuilder with an extremely experienced team at the helm. We have had a long association with the construction industry and to be working with a business that is so synonymous with quality is a perfect fit for us.”

Prowting is a name synonymous with UK housebuilding. The family ran their own housing business for many years branching out into commercial property and property investment.

The fourth generation are still actively involved as long-term investors in the industry – most recently as shareholders in Banner Homes and another housebuilder in the West Country.

Ian Milne of Reading-based Spectrum Corporate Finance facilitated the deal, with south coast regional law firm Coffin Mew acting on behalf of Bargate Homes and national law firm Shoosmiths acting on behalf of Prowting Investments plc.

 

Bargate-Homes-team
(From left): Jeremy Trezise, finance director; Rob Lambie, sales and marketing director; Mark White, commercial director; Angus Cook, managing director, Russell Davies, construction director; Gerard Price, chairman
Bargate Homes team
(From left): Russell Davies, construction director; Jeremy Trezise, finance director; Gerard Price, chairman; Mark White, commercial director; Angus Cook, managing director; Rob Lambie, sales and marketing director

 

 


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