The Irish subsidiary of Dutch construction company Royal BAM Group has bought a minority stake in modular home specialist Modern Homes Ireland.

MHI constructs steel-framed homes and commercial buildings in a controlled environment, with units up to 95% constructed before leaving the factory.  The terms of the purchase were not disclosed.

MHI was established in 2016 and has completed more than 400 residential units since, mainly in the Leinster area. It employs 120 people at its factory in Ballyjamesduff, Co Cavan, with a capacity of more than 500 units annually. Following BAM’s investment, MHI will increase production capacity.

BAM said it will bring expertise and experience that will enable MHI to bid for larger projects. It will also allow MHI access to BAM’s modular business in the Netherlands, where BAM Modulair Bouwen en Ontwikkelen has production facilities. The aim is for MHI to develop innovative elements for new-build and renovation projects in both the residential and non-residential markets.

BAM Ireland chief executive 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. 

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“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’.”

MHI joint managing director Chris Curtis added: “We are very pleased to have entered into this strategic partnership with an industry leader such as BAM, which will allow us to grow further and benefit from the vast experience 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.”

Both businesses plan to accelerate home building activity in social housing and PPP contracts, as well as in private developments in large population centres. “Given 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,” a statement added.