Paul Sonabend
Executive Chairman

Published June 25, 2021

In a time when we keep hearing about “greenwashing” it is life-affirming to see what a housebuilder can achieve when putting ESG principles front and centre of a development.

After the fantastic day out, I had with Angus Macdonald of Galion in Somerset last month, I was overwhelmed by the manner in which David Craddock M.D. Of Elite NuGEN Homes has re-imagined the housebuilding process to ensure that every aspect has been designed to minimise energy consumption and build in a sustainable manner, whilst providing high-quality living spaces.

First a Little Background

Priddy’s Hard is the area of historical value that encompasses the ordinance supply section of the Gosport Naval Docks. (Adjacent to the Portsmouth commercial docks). This area was in continuous use from 1750 to 1982 and is a designated Heritage site. David has worked closely with the Portsmouth Naval Base Property Trust to create a housing scheme that would enhance the area and would complement the historic buildings.

The First Phase

The first 10 houses were completed before Relendex became involved using a modular design. These were David’s testbeds before he embarked on a far more ambitious project.

The second stage involved the establishment of a factory, Elite Offsite, which is housed conveniently onsite. Here the wood timber frames are cut and assembled on an assembly line using sophisticated software that minimises wastage.

Harking back to traditional methods, David uses wooden nails (dowels) wherever possible, and these are precisely placed using compressed air guns.

A Revolutionary Construction Process

From assembly line to building plots is a matter of metres. Here, every aspect of the construction process is precision controlled.

• Skirtings are pre-cut.
• Staircases are installed early, so ladders are not required.
• All goods are craned in together.
• Only one trade works at a time.

David is a master of detail. Photo Voltaic cells and windows sit flush in special housings. Rooms are heated by infra-red panels mounted on the ceilings. Water cylinders only heat 20% of their capacity unless instructed to do more by an app.

"If it exists, and David has heard about it, then he will have considered it."

Perhaps, one of my favourite innovations is the elimination of ceramics.

• David tells me passionately about the wasted energy used to fire tiles, their high transportation costs, and the 25% off-cuts that end up in landfill.
• Instead, he uses a tiling system made from sustainable materials where the tiles interlock and do not need to be grouted.

No waste, no moulds, easy installation – clearly the way forward, as is so much of what he is doing.

A Desire to Share

My day at Priddy’s Hard was part of a group of suppliers and other builders invited to see the development.

Organised in conjunction with Travis Perkins, I was in excellent company. Representatives of some of the most innovative and ESG-conscious suppliers attended, as well as industry stalwarts, the Naval Trust, and several other high-quality, eco-aware bespoke housebuilders.

David was keen to share all his knowledge. He has an on-site innovation centre and is happy to introduce suppliers to and share techniques with other housebuilders. Elite Offsite has the capacity to supply other Select Portfolio Members.

How Relendex Helped

The Relendex lenders have not just helped because our underwriting team took a great deal of time to understand David’s plans and consequently have been able to finance a development site using non-traditional building methods, but have also helped in one other crucial way.

We have all heard of the current nightmare situation with delays in obtaining construction materials and escalating prices. These are causing extensive delays. These delays are often caused by an inherent flaw in the provision of development finance.

Typically, once a month a monitoring surveyor certifies the quantum of work completed, and the finance provider covers the cost plus an agreed amount to cover overheads. This means that builders are usually up against their credit limit with suppliers.

Relendex and Elite NuGEN Homes have entered into a Tri-Partite agreement with Travis Perkins that effectively allows David to pre-order all his supplies.

In anticipation of supply constraints, he has been able to forward order and is now expecting the completion of the scheme to take place 3 months ahead of schedule.

If David succeeds, this will be a truly remarkable achievement.

Needless to say, we wish him every luck.

Relendex and ESG

Relendex is slowly moving towards an emphasis upon sustainable building.

To this extent, we shall be not only labelling our RSP members but also our Green (G) ones.

Thus far, Priddy’s Hard and Lakeview would have qualified for inclusion. What is less well known is that the recently completed Crouch End Passivhaus development (light and heat running costs sub £100 p.a.) would also have been a prime candidate.

Relendex is not interested in borrowers’ ESG aspirations, nor in their claims for the excellence of their social and governance policies unless they are actually delivering.

We believe in action, not words, and hope that our lenders agree.

We want to encourage more builders to emulate David and Angus and trust you feel the same way.

So do not be surprised if the interest rate being offered on our (G) loans proves to be a little lower.

We shall be passing on the savings and more to our borrowers to encourage them to build greener.