Welsh property and construction firm, Jehu Group, has secured £5.5m of financial backing to support its growth strategy.
The firm received £4m worth of funding from the Development Bank of Wales, as well as a new £1.5m banking facility from Santander to assist with its expansion plans. After securing the financial support, The Group, which is currently working on over 20 construction projects across South Wales, is on track to see its turnover grow 19% to more than £50m in the next year.
Karl Jones, Property Investment Executive at the Development Bank and Project Lead on the property development loan, commented: “This is the first time we’ve had the opportunity to assist Jehu Group with one of their developments and we look forward to potentially supporting further projects in the future.
“The development is being part funded via the Wales Property Fund which has been established to provide access to funding to assist with development projects in Wales.”
A significant proportion of the development bank funding will assist with the construction of a new property development by the Group’s residential division, Waterstone Homes, which has seen its turnover rise from £9m to £21.4m this year. Due to launch this month, St Nicholas Fields is made up of 17 four- and five-bedroom family homes.
In addition to the capital from the development bank, a switch of commercial banking provider to Santander Bank has also enabled Jehu to receive match funding in the form of a £1.5m overdraft facility, which will go towards financing the everyday operations of the company.
The new overdraft facilities will improve the company’s ability to manage short term cash flow demands, providing greater certainty for future investments, while the Wales Business Fund loan from the development bank will enable Jehu to grow its land bank over the course of a seven-year period, in line with its wider business plan.
Image: The Waterstones Homes St Nicholas Fields development, at St Nicholas near Cardiff. Pictured from left to right are Karl Jones, Janette Bennett, Simon Jehu, Andrew Lycett and Cenydd Rowlands