Braidwater receives follow-on investment from BGF for expansion plans
DERRY-based house-builder Braidwater has secured a multi-million pound follow-on investment from BGF, having become the first company in the north to receive backing from the UK's most active provider of growth capital to SMEs in November 2015.
Braidwater, has been designing and building two- to five-bed family homes across Northern Ireland for more than 40 years, did not disclose the value of the latest capital investment (typically, though, the sums are between £2m and £10m).
But it said it will be used to support the development of residential properties across multiple sites it already has in its land bank and to purchase new sites (it plans to break ground and begin to develop out three new sites in 2018, including one in the Greater Belfast area).
The announcement came as BGF officially opened a permanent office in Belfast in the iconic Scottish Provident Building at Donegall Square West to help it build even closer connections to businesses and advisers in the north and drive further investment.
BGF has provided more than £25 million of patient capital to Northern Ireland businesses since its first investment just over two years ago - recycling company RiverRidge, coffee shop chain Bob & Bert's and software developer Audit Comply as well as Braidwater.
Joe McGinnis, managing director at Braidwater, said: “We are delighted BGF has chosen to follow its initial investment in the company after working closely with us over the past three years. BGF's long term approach and its input to the business has been invaluable for our development.
“The investment will help us pursue continued growth across Northern Ireland and also to increase awareness of the business in and around Belfast. Turnover is growing, our staff numbers have increased from 12 to 46 in only a few years and the pipeline of activity for 2018 looks good.”
Patrick Graham, investor at BGF said: “Since we invested two years ago, Braidwater has increased its turnover by a multiple of five to almost £25m. It was therefore no surprise that the company required a sizeable follow-on investment to enable it to continue on that growth trajectory.
“We have built a strong relationship with Joe and his team during an exciting period for Braidwater which has seen strong demand for high quality family homes continue. The team has continued to successfully develop its pipeline of land for development in Northern Ireland and we are confident that they have the expertise to deliver on those new opportunities.”
BGF provides patient capital to businesses with revenues typically between £5m and £100m in exchange for a minority, non-controlling stake,ans so far has provided more than £1.4 billion to businesses across Britain and Ireland.