Royal BAM Group’s Irish operating company has acquired a non-controlling share in leading modular homes provider Modern Homes Ireland (MHI). MHI constructs quality assured steel-framed homes and commercial buildings within a precision-controlled environment with units being up-to 95% constructed before leaving the factory. It was established in 2016 and has completed more than 400 residential units since then, mainly in the Leinster area, including a combination of social housing and high-end residential developments. Based in Ballyjamesduff where it employs 120 people with a current capacity of more than 500 units annually, it is led by its founding shareholder team of Joint Managing Directors Chris Curtis and Stephen McManmon and Executive Directors Adrian McNally and Brendan McNally. Financial terms of the transaction were not disclosed.
Both businesses plan to accelerate home building activity in social housing and PPP contracts as well as in private developments in large population centres. BAM will bring the expertise and experience which will enable MHI to bid for larger projects. This step also allows MHI access to BAM’s modular expertise in the Netherlands, where BAM Modulair Bouwen en Ontwikkelen has state-of-the-art production facilities in Veenendaal to develop innovative elements for newbuild and renovation projects in both the residential and non-residential markets, thus contributing to making buildings more sustainable and circular.
Theo Cullinane, CEO, BAM Ireland said: "This is a significant strategic investment for BAM. We are cognisant of the need for an acceleration of output in the housing sector and we are happy that our investment will play a part in the solution to the current housing crisis in the country. Modular is clearly the future and this is a unique opportunity to further develop a business, not just in housing but in modular housing which aligns closely with our drive towards ‘digital construction".
Commenting on the deal, MHI Joint Managing Director Chris Curtis said: ‘We are very pleased to have entered into this strategic partnership with an industry leader in BAM, which will allow us to grow further and benefit from the vast experience that they will bring to us. This significant investment further confirms that off-site construction is the future of housing and that our firm is at the forefront. This collaboration is the foundation for an exciting future ahead for MHI."