Assets set to be sold as modular housing joint venture enters administration

Fri 13 May 2022 | ADMINISTRATION

The US House Group modular housing joint venture has fallen into administration, and buyers are expected to be sought for various assets. The company, which operates a factory in Alfreton, Derbyshire, collapsed following operational issues at the facility and reported losses in its recent financial accounts.

The group is a joint venture between Urban Splash and Sekisui House UK, the UK subsidiary of a Japanese company, with each holding 48% and the remaining 4% held by Homes England. The US House Group collectively comprises seven companies: Urban Splash House Holdings Ltd; Urban Splash House Investments Ltd; Urban Splash House Ltd; Urban Splash Modular Ltd; Port Loop Holdings Ltd; Port Loop Ltd and Port Loop (Subco1) Ltd.

The company is involved in a number of ongoing developments, including the Northstowe site in Cambridge, which is part of a wider 10,000 home development on Homes England land. The US House Group has also been involved in programs such as East Float in Wirral Waters, New Islington in Manchester, Port Loop in Birmingham and Grappenhall Woods in Warrington.

Formed in 2018, the group was created through Urban Splash’s acquisition of SIG’s modular subsidiary, including the company’s Derbyshire factory. In 2019, Sekisui House acquired its stake in a deal which saw it invest an initial £22m, while Homes England also invested £30m in debt and equity financing.

Daniel Smith and Adrian Berry of Teneo Financial Advisory Limited were appointed joint directors of the group companies on May 11 and will seek to oversee the completion or sale of the group’s ongoing development sites, as well as explore sale options from the Alfreton factory.

Co-manager Adrian Berry commented: “This appointment follows various operational issues at the Alfreton plant which have impacted the entire group.”

“We will now seek to stabilize the US House group by providing a platform to complete certain developments and explore sale options for the plant and other development sites.”

Administrators added that the larger Urban Splash group is unaffected by administration.

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