Former Avant Homes chief executive officer Mark Mitchell has returned to housebuilding with the launch of Honey, a new company backed by private equity firm Alchemy Partners.
Sheffield-based Honey has initially agreed to acquire two developments in South Yorkshire and Derbyshire. The company intends to submit plans as soon as possible to deliver a total of 141 units across both developments which will have a combined gross development value (GDV) of £40m.
Honey is also in advance discussions on two other sites in the same regions which could deliver a further 148 news homes with a combined GDV of £47m. It is anticipated that the average selling price of Honey homes will be £300,000.
The new business is being funded by Alchemy Special Opportunities Fund IV which has £937m of fully committed capital.
Mark previously worked with Alchemy when the private equity firm was part of a consortium that owned Avant Homes before it was sold to new owners last April.
Mark who was born in Sheffield and lives in the city, said: “It’s great to be launching Honey. I can now start realising my vision for building new homes that will deliver a combination of style, substance and sustainability that will be unmatched at its price point.
“There is a clear gap in the housing market for the type of properties we’re going to build. Designing the house types has been a real labour of love because we want to provide people with homes purposely created for them that will set new standards.
“It’s very pleasing to be working with Alchemy again. We are completely aligned in how we want to achieve our growth objectives which is through outstanding product design, smart land buying and excellent customer service.
“We’re now looking forward to submitting our planning applications on our first developments so we can start building Honey homes as soon as possible.”
Honey has analysed consumer insights and trends to inform its house type designs to ensure they meet the needs and wants of today’s new home buyers, including the flexible use of all living spaces.
The house types will accommodate the Future Homes Standard which requires all new homes being built from 2025 onwards to produce 75-80 per cent less carbon emissions.
Alchemy Partners partner, Thomas Boszko, added: “Having worked with Mark previously we are fully aware of his talent, capability and ambition. With Honey, we will be delivering a distinct proposition which we know there is a very strong demand for.
“We’re looking forward to supporting Mark and his team as they grow Honey into a significant and highly respected homebuilder in the north of England and Midlands.
“The plan is to do this through a combination of organic growth and targeted acquisitions when the right opportunities present themselves.”