£3m deal marks North West Fund’s biggest cash exit to date

The North West Fund for Energy and Environmental has announced its biggest cash exit to date with the successful disposal of property investment company PlaceFirst Ltd.

The deal, which marks a £3m return for The North West Fund, comes after Manchester-based PlaceFirst signed a new funding commitment with ESO Capital, an investment management company, to drive its project to deliver 1,000 new homes for rent.

Since pairing up with The North West Fund, PlaceFirst has created 64 affordable homes in Accrington and another 51 in Morecambe. Further, the company has attracted around £7.5m in additional investment and created 200 new jobs with its Lancashire projects.

PlaceFirst is working on a number of projects in the region, including the redevelopment of Welsh Streets in the Dingle area of Liverpool.

The North West Fund for Energy and Environmental is run by fund management firm 350 Investment Partners (350IP).

Jonathan Bryers, a partner at Warrington-based 350IP, commented: “PlaceFirst has developed and demonstrated an innovative model for bringing to the market energy efficient social housing in the North of England.

“Given the acute demand for affordable energy efficient rental property, this is a timely and novel approach using investment finance to deliver clear social, environmental and economic benefits.”

PlaceFirst CEO David Smith Milne said the company would not have been able to unlock growth “in such a short space of time” without the help of 350IP and The North West Fund.

He said: “We now have the track record and material new funding to deliver on our growth plan to create a portfolio of 1,000 high quality, energy efficient and affordable rental homes for families that are caught in the gap between social housing and homeownership.”

The North West Fund for Energy and Environmental, which is now fully invested at £20.6m, has so far enabled private sector leverage of over £28.8m and is aiming to grow that figure to £40m by 2017.

Cliff Maylor, the CEO of North West Business Finance, the not-for-profit firm behind The North West Fund, said of the deal: “This exit represents a major landmark for The North West Fund and comes as a result of the commitment, determination and expertise of our team and business partners.

“The exit value of £3m is testament to the work we have put in and our ability to add value to the companies we work with.”

The North West Fund is provided jointly by the European Investment Bank and the European Regional Development Fund.

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