Investor takes controlling stake in housebuilder behind major Wolverhampton projects
A firm that specialises in building affordable homes and has recently been involved in two major redevelopments in Wolverhampton has sold a majority stake to a a private equity investor.
Jessup Brothers in Station Court, Girton Road, Cannock, was established 34 years ago, and has been involved in some major housing schemes across the Black Country and enjoys preferred partner status with Government agency Homes England.
It recently completed the Cleveland Road project in Wolverhampton, which was made possible by Homes England buying the former bus depot site enabling it to be redeveloped as a key gateway to the city centre. Jessup has also won the land bid for the adjacent site of the former Royal Hospital, which will be converted into 38 apartments for over-55s, while an additional 123 homes for affordable rent and 31 for shared ownership will be built on land to the rear of the hospital building.
A majority share has now been acquired by Palatine, which invested in house builder Westleigh in 2016 before selling the business to Countryside.
As part of the transaction, former Westleigh founder Chris Beighton, director Matt Moore and chief financial officer Kathryn Facey have joined Jessup’s leadership team as chairman, chief executive and non-executive director respectively.
Jessup founder Clive Jessup retains a stake in the business as founder director and the deal also sees Palatine partner Richard Thomas and investment director Tom Hustler join the board as non-executive directors.
Mr Beighton and Mr Moore bring a combined 50 years’ experience in the house building sector to Jessup’s leadership team and industry-leading expertise in modern methods of construction, having pioneered the adoption of timber frame construction in the affordable housing sector while part of Westleigh.
The investment, from Palatine’s Buyout Fund, provides Jessup with a solid platform for growth as it targets expansion into the East Midlands as well as continuing to develop its existing West Midlands operation. The business currently delivers approximately 500 homes per year and has diversified into mixed-use development for customers including the YMCA for whom it built a news site at Cleveland Road.
Richard Thomas, partner and head of Palatine’s Midlands office, said: “Clive and his team have grown Jessup into a trusted, valued and longstanding partner to housing providers in the Midlands with an enviable reputation for quality and delivery.
“With growing demand for affordable homes, our backing will enable Jessup to support more local authorities and registered providers as they seek to ease the housing crisis, further demonstrating the positive impact private equity can have on the economy and society.”
Mr Beighton, the new chairman of Jessup, said: “Jessup has an excellent reputation in the Midlands market, and a unique breadth and depth of knowledge of the funding environment. This investment will enable us to continue to innovate in MMC, unlock new opportunities for Brownfield development and grow our footprint through targeted land-led opportunities in the East Midlands.
“I’m excited to join the already strong leadership of the business and to once again be working with Matt Moore. Kathryn Facey and Palatine, who I know first-hand to be a collaborative and supportive growth partner.”
Clive Jessup added: “The addition of Chris, Matt and Kathryn to our leadership team and the backing of an investor with an excellent track record in our market, marks the start of an exciting period of growth for Jessup, presenting new opportunities for our fantastic employees, suppliers and customers.
“Palatine have a deep understanding of our market and the expertise to further develop our already strong environmental, social and governance credentials, at a time when this is of growing importance to our customers across the public and social housing sectors.”
