Low cost house builder constructs growth plans with £35m of new funding from Santander UK
Santander UK has provided MJ Gleeson with an additional £35m of funding to help the business meet its target of growing the business beyond its target of 2,000 homes a year, which it expects to achieve next year. Santander’s funding will support the business’s working capital and provide headroom for growth. In the last 10 years, the business has reported growth of 20% per annum.
Founded in Sheffield in 1903, MJ Gleeson comprises of Gleeson Homes, which develops and sells high quality affordable housing, predominantly to first time buyers in the North and Midlands, and its land promotion business, Gleeson Strategic Land, which promotes land (predominantly in the South of England) through the planning for sale to residential developers. Once consented, half of its sites are sold to the UK’s top 10 national housebuilders.
Gleeson Homes focuses on building high quality, affordable properties which have an average selling price of £140,600. The business has followed government guidance to continue construction during the pandemic. In 2020, it launched its Key Worker Priority Programme, which includes a range of benefits, for instance 48-hour priority access to new sites and plots for keyworkers, exclusive viewings, or £1,000 towards improving the property’s specification.
Stefan Allanson, chief financial officer, MJ Gleeson, commented: “Our decision to partner with Santander was based on their understanding of our business and their commitment to the house building sector. The team at Santander share the same values as Gleeson: passionate, collaborative and respectful.
“With their support we will deliver even more, much needed high quality, low cost homes for young, first time buyers who are either leaving home for the first time or escaping the rent trap. Santander is helping us to achieve our vision of ‘Building Homes. Changing Lives’.”
Nick MacHugh, relationship director at Santander UK, said: “MJ Gleeson has a clear vision and social purpose, and its business model is driving year on year growth. We’re delighted that the management team has chosen Santander to provide additional working capital to support its growth aspirations. We look forward to working with the management team to help more people achieve their dream of home ownership.”
