An investment of £15.5m has been agreed between investors BGF and property developer Burrington Estates, to support the ambitious growth plans of the Exeter-based business.
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.
From the £15.5 million investment, £13.5 million will support the expansion of Burrington Estates New Homes.
BGF’s investment and Burrington Estates’ progressive growth plans reinforce the positive momentum in the property market at the end of 2020, with the Bank of England stating that mortgage approvals reached a 13-year high in 2020. The pandemic has generated strong house sales in regional markets.
The additional £2 million investment has been allocated to Burrington Estates Commercial to enable the development of business parks in the South West, enabling small companies to acquire their own business units. The first two business parks, SkyPark in Exeter and Eurotech Park in Plymouth have received high levels of interest and demand due to their high-quality, flexible, and sustainable credentials with 80% of units reserved off plan for both locations.
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.”
The deal was led by James Skade, Hannah Waters and Alex Garfitt from BGF.