The deal, which will see Man GPM develop a zero carbon and inclusive mixed tenure community in Lewes, represents a huge vote of confidence in offsite manufacturing from a global active investment manager.
Man Group's Community Housing team seeks to achieve the dual objectives of providing both social and financial returns, addressing the housing crisis in the UK by building homes that are affordable to local households.
The UK has experienced a significant, long-term mismatch between supply and demand in the housing market, which has led to an affordability crisis impacting households earning the median income and below. The team invests institutional capital to build new homes with the aim of generating positive returns for investors and delivering a demonstrable social and environmental impact.
The homes will be targeted at key workers and those in need of affordable rental housing in addition to shared ownership. Subject to approval of reserved matters, work is planned to start on site in 2024.TopHatwill work with the local community and planning authority to create an exemplar scheme delivering on the high-quality design brief adopted for the site.
The development reflects a 21stcentury approach to housing delivery with TopHat precision-engineering the homes offsite in the company's new 650,000 square feet manufacturing facility. Offsite manufacture has other significant benefits with substantial reductions in embodied carbon and less disturbance for local residents compared to on-site construction activity.
TopHat's new facility, which will be the largest of its kind in Europe once operational in 2024, will bring together the latest robotics and the company's proprietary technology to manufacture and distribute up to 4,000 beautiful homes per year. One thousand new, green economy jobs across a wide range of roles will be created and a training academy will be established in partnership with local colleges.
Every home that rolls off TopHat's production lines is capable of being zero-carbon, meaning no operational emissions are produced from heating and utilities. This is achieved through exceptional fabric and technology such as solar panels, air source heat pumps and battery storage.
Reducing the UK housing stock's operational emissions is deemed vital if the UK is to meet its legally binding net-zero targets. Energy use in homes currently makes up 23 percent of the UK's greenhouse gas emissions – more than double the amount from agriculture, and nearly as much as all transport emissions.
Jordan Rosenhaus, CEO and Founder of TopHat, said: "TopHat offers a unique proposition for investors deploying capital into the residential markets. Our use of low-carbon technologies and cutting-edge manufacturing processes mean that TopHat can deliver future-proofed assets at pace so that income can be received sooner in the development cycle.
"Our partnership with Man GPM will help address some of society's most pressing issues – namely the chronic shortage of affordable housing and the cost-of-living crisis. Diversifying the supply of new-builds will be vital in increasing the supply of energy-efficient housing across the UK."
Shamez Alibhai, Managing Director and Head of Community Housing Man GPM, said: "The development at Old Malling Farm is a clear demonstration of the positive outcomes socially and environmentally responsible capital can deliver to local communities. The homes will address the dual crisis of housing affordability and climate change, while delivering a high-quality place-based development to meet the aspirations of the local council and residents."
"By working together with progressive partners like TopHat, we have demonstrated that communities no longer have to choose between quality, affordability and sustainability."
