BAM has acquired a stake 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. Financial terms of the transaction are not disclosed.
Picture caption: BAM has acquired a stake in leading modular homes provider Modern Homes Ireland (MHI) as it targets the residential construction market in Ireland over the coming years. MHI, based in Ballyjamesduff, Co. Cavan, builds quality assured steel-framed homes and commercial buildings with units being up to 95% constructed before leaving the factory. Pictured is Brendan McNally, Executive Director & Co-Founder, MHI; Stephen McManmon, Joint MD & Co-Founder, MHI; Theo Cullinane, CEO, BAM; Minister of State for Housing and Urban Development Damien English T.D.; Chris Curtis, Joint MD & Co-Founder, MHI; Adrian McNally, Executive Director & Co-Founder, MHI.
BAM has taken the strategic step with MHI, the only NSAI certified volumetric housing provider in Ireland, to enhance and maximise business opportunities for both companies in the Irish construction sector. MHI 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.
With the growing demand for housing, increasing industry resource constraints and the rising level of public and private investment in social and private homes, there is a significant opportunity for both to become the leaders in the use of modular construction for housing, student accommodation and hotels. These sectors are an important part of BAM’s current output. Both businesses plan to accelerate home building activity in social housing and PPP contracts as well as in private developments in large population centres. This further development in its modular approach, reflecting the change in the industry and in line with BAM’s strategy Building the Present, Creating the Future, enables BAM to offer its clients added value through high quality and rapid programmes.
MHI has a unique and immediate offering of volumetric housing units and is well positioned to grow significantly in modular construction across multiple streams. They can competitively deliver high quality housing, unaffected by the construction skills shortage currently being experienced in Ireland.
The benefit of off-site fabrication is a significantly faster build time than traditional construction.
Following BAM’s investment MHI will further increase its production capacity in Ballyjamesduff.
It will also benefit from BAM’s widespread knowledge across technical and academic fields and access to BAM’s global innovation team. This will improve its processes from a production and operational efficiency perspective, as well as being able to leverage BAM’s strong client base to enter new markets.
BAM will also 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.
Confirming the investment BAM Ireland CEO Theo Cullinane 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.”
Ballyjamesduff, Co. Cavan / Kill, Co. Kildare, Ireland / Bunnik, the Netherlands, 25 January 2019.