Innovation Capital Advisors

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ICA leads the growth capital raising for Lusso Homes

June 8th, 2016

Client Overview

Lusso Homes (‘Lusso’) was established in 2006 by an experienced team and is an award winning luxury residential property developer building homes for the premium domestic market throughout Surrey. Lusso selects only the very best opportunities, choosing sites in prime, often unique, locations and working closely with leading architects, designers and landscapers to create homes with a genuine ‘wow factor’. Each Lusso home is a compelling blend of traditional robust construction in conjunction with contemporary style. Projects are typically small luxury housing developments with individual unit values of between £1.25m and £5m, catering for the London and South East market. Lusso built its reputation on speculative builds however as their reputation has  grown they have a growing design and build practice, working with discerning buyers to build their luxury home. Given the on-going shortage of new quality premium homes, Lusso have a strong pipeline in its core target market and the opportunity to grow into other areas of the Home Counties is significant.

Deal Overview

Innovation Capital Advisors (‘ICA’) was engaged by Lusso to help them secure a funding partner to enable them build up their team and execute their strong pipeline given the significant market opportunity in their target markets. With this remit, ICA led the capital raising process and having secured a number of offers of funding, Lusso chose to receive investment from Ashridge Capital given their experience in the market and ability to add value as the business grows. Moreover, due to ICA’s strong belief in Lusso’s team, product and strategy, as well as its experience in the house building sector, ICA also invested and is going to have an on-going role to help ensure the business achieves its full potential. The funding round closed in May was a first close and given the strong pipeline there is still  the opportunity to invest more capital into the business so it can grow faster.

Quotes

Tony Martin, CEO of Lusso Homes, said: “ICA provided invaluable support and guidance throughout our capital raising process and helped us secure a strong investor that buys into our vision of becoming the leading premium house builder in the Home Counties. I am also very pleased Simon Ramery from ICA will continue to be involved going forward given his experience in house building and private capital markets”.

Simon Ramery, Senior Director of Innovation Capital Advisors commented “I have been monitoring the UK house building market for a number of years and it is clear that there is a significant gap in the market for quality premium house builders as this is not a core competency of the volume house builders given their heritage. Lusso’s track record is excellent and there is a significant opportunity for Lusso to become a leading premium house builder in the UK given the strong demand for quality homes. I am therefore looking forward to working with Lusso and Ashridge Capital to help execute the growth plan over the next 3 to 5 years”.

David Sherratt, Director of Ashridge Capital said “I am very pleased to have closed the first round of investment in Lusso Homes. The business has established a strong brand, developing high quality homes in a geography with good and sustainable demand, and a large and growing pipeline of new sites has been secured, Ashridge Capital is open to further high net worth investors co-investing with them in the next funding round”.



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