Leading alternative asset manager Cheyne Capital has today announced the sale of its majority shareholding in independent housebuilder Elivia Homes to funds advised by Octopus Investments, part of Octopus Group.

Since it first invested in Elivia Homes, formerly Vanderbilt Homes, in 2014, Cheyne has played an integral role in supporting the firm’s ambitious growth into one of the South-East’s leading housebuilders. In the four years since Cheyne recommitted to its investment, Elivia has more than doubled its number of homes.

Cheyne has also supported Elivia’s management team in improving its business model, investing in talent and clarifying its growth strategy, and was the source of the innovative financing solution that enabled the business to acquire Crayfern Homes and successfully integrate the business into the Group.

The Octopus team have a long-term strategy in place to continue Elivia’s growth, with the aim of transforming it into a £250m turnover business, delivering over 600 design-led and sustainable homes in aspirational locations per year.

Rob Turner of Cheyne Capital Real Estate, said: “A key tenet of Cheyne’s real estate strategy has been to provide flexible finance solutions to housebuilders delivering high-quality homes in areas with a severe shortage of supply. This investment is a perfect example of this and the results are a testament to what can be achieved through the application of deep expertise and dedicated partnership.”

Ravi Stickney, Managing Partner and CIO of Cheyne Capital Real Estate, added: “We are very proud of what has been achieved in our eight year journey with Elivia Homes. This has not been an easy environment for SME housebuilders but together we have navigated the challenges posed by such major geopolitical issues as Brexit, the COVID-19 pandemic and, most recently, the outbreak of war in Ukraine, and, in spite of this tumult, the business has emerged stronger than ever.

“We are confident that the Octopus team will continue this strong momentum and support the next stage of Elivia’s growth. We wish both them and everyone at Elivia all the best for the future.”