Based in Sheffield, Honey has agreed to acquire two developments in South Yorkshire and Derbyshire for its first projects.

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 what are described as advance discussions to acquire two other sites in the same regions. These 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.

Honey chief executive Mark Mitchell 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 in April 2021.  [See Persimmon’s Fairburn returns to buy Avant Homes.]

Mark Mitchell, said: “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.”

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.”

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