BESPOKE / CREATIVE / FLEXIBLE
EQUITY BACKING FOR EXPERIENCED DEVELOPERS WITH MORE PROJECTS THAN CASH
For those developers who have an opportunity to acquire a profitable scheme, but have their cash tied up in other projects, there is the option of up to 100% JV development finance. This option is only available for established developers who have built a comparable project in the past, and who have a reasonable net position, but may be a bit light on cash.
Generally speaking, for the equity investment, the lender would usually charge an interest rate for the money as it is drawn, and then some form of profit share. Alternatively, some lenders will just split the profit 50/50 at the end.
In all cases, in order to get a full understanding of the project and the client’s funding request, we will require:
- High level executive summary of the project
- Business bio of financial sponsors
- Valuation if available
- Development appraisal
- Cashflow/schedule of works
- Any CGI or drawings
- If a leasehold; tenancy schedule and lease terms
- Exit strategy and end value assumptions
- Marketing and sales strategy
BIG PICTURE THINKING, DETAILED EXECUTION
OUR JV PARTNERS SEEK PROPERTY RELATED INVESTMENT OPPORTUNITIES THROUGHOUT THE UK THAT OFFER COMPELLING LONG TERM PROSPECTS ACHIEVED THROUGH ATTRACTIVE FUNDAMENTALS.