Joint Venture.
Bringing Clarity to the complex world of Property Finance.
If an experienced developer is looking for an alternative route to finance then a Joint Venture or equity finance could be considered.
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Typically, this involves 100% funding by an investor or partner, for a profit share that is determined by the individual lenders assessment of risk.
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The developer will be responsible for funding all “up-front” costs (i.e. before the land acquisition) including the planning consent and professional reports, though these can usually be charged back to the scheme.
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The developer will need to demonstrate sufficient experience and show their success via previously delivered schemes.
Joint Ventures are essentially a partnership and are agreed on a case by case basis.
Joint Venture Criteria
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Detailed planning consent must be in place.
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Commercial and mixed-use schemes can be considered with a pre-sale or pre-let.
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Developer will need to show competence and experience in delivering high margin schemes
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Personal Guarantees will be required.
Key Features
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100% of costs covered (except any necessary upfront professional reports)
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Project needs to show a minimum profit margin of 25% on GDV (excluding finance)
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Minimum project costs of £500k, with no upper limit.
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Interest rate, fees and profit share on a case by case basis.
We are here to help - there is no obligation - please do give us a call, email us or fill in the form opposite and we will get back to you as soon as possible
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07497 113341
dan@claritydevelopmentfinance.co.uk
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07984 150034