Clearwater Corporate Finance has advised intermediate housing developer Pocket on raising £10m equity funding from an institutional real estate investor. The fundraising will enable Pocket to acquire and develop at least five sites across London and support its bid to boost affordable home ownership in the capital.
Pocket is a private sector niche developer that specifically targets the intermediate market where thousands of Londoners earn too much to qualify for social housing, but not enough to buy on the open market.
Marc Vlessing, director of Pocket, said: “The intermediate market of first time buyers who are salaried out of social housing, but priced out of the open market – i.e. some forty per cent of working Londoners between 20-39 – is growing alarmingly and this poses a huge social and economic challenge for the UK.
He continued: “This is an exciting time for Pocket as we pioneer new ways of delivering housing that is affordable for first time buyers in high density urban areas. Clearwater’s focused approach has been vital in securing the funding that will play an integral role in speeding up the development of affordable homes in the city”.
Marcus Archer, said: “Pocket provides excellent services that prevent local people having to leave London because of a lack of affordable housing. The investment will secure Pocket’s financial position and ready the firm for its next stage of growth.
“The deal demonstrates that despite the difficulties of securing funding in the real estate sector, stand-out projects and businesses in niche areas, with the right teams behind them will succeed”.
The funding will generate a supply of starter homes for singles and couples across five sites in London. A site in Hackney has already been purchased and planning consent has been achieved in Fulham and Hammersmith for Pocket’s next project.