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 could be considered.
Typically, this involves 100% funding by an investor or partner, for a profit share that is determined by the individual lenders assessment of risk.
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.
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
Detailed planning consent must be in place.
Commercial and mixed-use schemes can be considered with a pre-sale or pre-let.
Developer will need to show competence and experience in delivering high margin schemes
Personal Guarantees will be required.
100% of costs covered (except any necessary upfront professional reports)
Project needs to show a minimum profit margin of 25% on GDV (excluding finance)
Minimum project costs of £500k, with no upper limit.
Interest rate, fees and profit share on a case by case basis.
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