100% JOINT VENTURE DEVELOPMENT FUNDING

HOW WE WORK

  • We like to work with experienced developers.
  • Projects would be multi-unit residential new build or conversions under PDR* in the mid-range price bracket.
  • Project length should be no more than 24 months.
  • Full planning permission must already be in place.
  • GDV target of £2m-£10m. GDV per unit should be no more than £700k for Home Counties and £400k for other areas.
  • Interest is charged on a blended mix of senior and mezzanine elements which is competitive.
  • We work to ROCEs (Return On Capital Employed).
  • Profit is divided between JV partners, typically it’s 60/40% in the developer’s favour.
  • We will hold the asset in a brand new Special Purpose Vehicle (SPV) owned by us.

*Permitted Development Rights – Commercial conversions to residential under PDR planning.

joint venture development funding

THE BENEFITS

  • One-stop-shop solution. One set of legal fees, one relationship, one monitoring surveyor. All costs amalgamated into one – real savings.
  • It doesn’t tie up your funds meaning you can turbo-charge your profits through multiple deals.
  • Input some of your capital with us and earn a fantastic rate of return on it at 10% PA as well as the bulk of the profits at the end of the deal.
  • Allows you to take on more projects with all the synergy and profit benefits.
  • No need to service debt at any stage all interest can be rolled up to the end of the project.
  • Option to take project management fees.
  • One JV funder covering all the costs, removes the need for inter-creditor agreements and keeps things simple.