Property Joint Ventures:
Our joint-venture panel (JV) is made up of individual institutions that provide equity to housebuilders on a day-to-day basis. The panel is built around JV partners who can deliver for our developers and have access to significant amounts of capital. Finance is typically supported by a well-known and established senior debt provider. The JV partners will expect a profit share between 30 to 50% of the overall profit.
Our in-house development finance model forecasts senior debt and the equity requirement from the lenders together with looking at the end profit you might make post JV costs.
Who are they looking for?
- Typically, our JV partners are looking for profitable development schemes with profits post senior debt higher than 20%.
- Ideally developers will have previous experience on similar size schemes and have an asset base to support a cost overrun guarantee and interest guarantee.
- Preference is towards multi-unit development schemes that are liquid, in strong locations together with good sales demand.
- Schemes with a GDV of typically £3,000,000 plus.
- Individual unit values typically up to £750,000 however larger units in the right locations will be considered.
- Developers looking for long term JV partners.
Our years of experience as lenders grant us the ability to provide top-notch support to our customers when renewing terms, requesting further advances or during the unfortunate event of a breach of covenants.
We can also present a 360-degree review of your business from a financial perspective along with the potential opportunities available to you through existing funding or refinancing.