Nottingham-based property services company SDL Group has received £3m follow-on funding from BGF to support its new venture of delivering over 2,000 purpose-build homes over the next three years.
Branded ‘Wise Living’, the joint initiative between SDL and asset-manager ICG-Longbow will acquire sites and develop detached and semi-detached housing for rent in the UK, aiming to challenge existing standards in the private rental sector, create new communities and ultimately drive improved living standards for its tenants.
The investment follows a period of significant growth at SDL and an opportunity to take advantage of the housing market’s move towards private rented properties.
BGF recently opened an East Midlands office in Nottingham and initially invested £10m into SDL in 2015.
SDL Group, formerly Shepherd Direct, manages more than 170,000 property valuations a year for major mortgage lenders, and provides auctions, lettings and estate management services across the UK.
The launch of Wise Living comes on the back of the Government’s pledge to tackle the UK housing crisis by building more new homes. Working with local authorities, land agents and house builders across the Midlands initially, Wise Living is already in advanced talks to acquire a number of sites with work expected to begin in the coming months.
Andy Deller, Group Strategy Director at SDL Group, said: “In the coming years, build-to-rent will prove crucial in meeting housing demand. Wise Living aims to deliver thousands of quality homes to people who either do not want to, or cannot afford to, buy.
“We’re delighted to have received further investment from BGF as we continue to scale the business. This is another vote of confidence in our growth strategy, and we’re pleased to continue working with them.”
BGF investor and SDL board member Ian Downing added: “This is a fantastic opportunity for SDL at a time when the housing market is seeing significant growth. We’re delighted to be following our initial investment in the business – and to have completed our first investment from our new home in Nottingham.”
BGF has invested close to £100m in companies across the region since 2011, including SDL Group, The Coaching Inn Group, GCI, Rutland Cycling and Johnsons Aggregates.