Bridgepoint is seeking to capitalise on soaring valuations as the housing market booms, with the sale or float of Miller Homes, one of the UK’s biggest housebuilders.
The private equity firm has appointed investment bank Rothschild to advise on its potential exit from Miller Homes, four years after it bought the company from GSO Capital Partners, a Blackstone spin-off, for £650m.
An initial public offering could also be on the cards fort Miller Homes, Sky News first reported, and any sale is likely to value the builder at more than £1.3bn.
After the housing market was put on pause at the start of the pandemic, house builders built up huge cash reserves as their limited stock and a boom in sales combined to increase revenues as well as competition for land amongst competitors.
In its results for the first half of 2021, Miller reported its revenues more than doubled from a year earlier to £525m, fuelled by an increase in completions and a 15 per cent increase in the average selling price of homes to £280,000.
Many of Miller’s rivals, including Taylor Wimpey, Barratt Developments and Persimmon Homes, are already listed on the London stock exchange.
Miller Homes and Bridgepoint have been contacted for comment.