An investment of £15.5m has been provided by the Business Growth Fund (“BGF”) to Burrington Estates, an Exeter-based residential and commercial development group. This investment represents the largest initial investment by BGF’s Bristol-based team since BGF commenced in 2011.
Burrington Estates launched its New Homes business in 2016 and its Commercial industrial development business in 2019, creating two distinct divisions – Burrington Estates New Homes and Burrington Estates Commercial. The New Homes division has built over 400 homes worth £120 million across the South West during the past five years, building a brand and reputation for quality customer service and design.
With a business plan to grow both divisions and with a significant pipeline of controlled land to be built out, Burrington Estates sought investment to support its progression to successfully move into the next phase of growth. £13.5m of funding will support the expansion of Burrington Estates New Homes, predominantly in the Midlands region. The remainder of the initial funding has been allocated to Burrington Estates Commercial to facilitate the development of business parks in the South West.
Mark Edworthy, managing director of Burrington Estates said: “BGF’s investment and strategic insight is hugely welcomed in the development of Burrington Estates and is integral to the future success of our organisation. We have found real chemistry with the BGF team and look forward to partnering with them and receiving their advice and guidance. We also intend to become a strong player in the BGF community. We already work with three other BGF portfolio companies.”
BGF has strong experience in backing regional developers across the UK & Ireland, with investments in Woodall Homes, Braidwater, Campion Homes, Winterbrook, Apex Housing Group and Cussins.
James Skade, BGF investor, said: “Burrington Estates is a really exciting investment for BGF – as a progressive and forward-thinking property developer, both the residential and commercial divisions are bringing a fresh approach to the sector and have impressive plans for growth. We look forward to being part of that journey.”
Isca Ventures introduced BGF to Burrington Estates. The advisers to the transaction were: Burrington Estates – Isca Ventures (Corporate Finance), Birketts (Legals) and BGF – PwC (financial due diligence), Burges Salmon (Legals).