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.
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.
