THE future of environmentally-friendly construction in the region has received a boost worth nearly £1m.

SIP Home has attracted investment from Derwent Developments, a subsidiary of Tyneside-based Grainger Trust plc, the UK's largest quoted residential property investor.

Grainger has bought 49 per cent of the share capital of energy-efficient building company SIP, with first option to buy the remaining shares.

SIP Home, founded in 2003, was inspired by energy-efficient technology used in commercial building.

Founders John Cotterill and Stephen Taylor wanted to bring the technology to the residential market, which has made little progress in the past 20 years.

Instead of bricks and mortar, SIP uses made-to-measure insulated panels that, once in place, look like any other house.

The panels reduce construction costs and are used by SIP to form walls and roofs on all types of new-build properties.

The deal has also seen Grainger Trust using SIP's products to build green homes in the region at a development in Hadston, Northumberland.

North-East law firm Ward Hadaway advised on all legal aspects to complete the deal and secure funding, in effect making SIP Home Ltd a joint venture with Grainger Trust.

Grainger Trust deputy chief executive Andrew Cunnigham said: "SIP Home Limited has developed an impressive niche in the market for environmentally friendly and energy efficient domestic construction.

"With new European legislation coming into force in 2010, and as more people buy into the idea that their home can be green as well as cost-effective, this sector is set to go from strength to strength."

Published: 01/02/2005