A Joint Venture is a contractual agreement joining together two or more firms for the purpose of executing a particular business strategy. At Berkshire Capital Finance we have a network of investors, developers, and contractors who are actively looking to engage in Joint Venture relationships. This unique solution has resulted in lending 100% of the total projects costs, enabling the completion and realisation of the project. We can introduce either pure equity investment into a development deal or partner a developer with another who comes with the equity. Depending on your situation we will find the right solution to suit your needs. Joint Venture Development Funding CriteriaWe can provide 100% Joint Venture Development funding for deals in and around the UK. In general, they must meet the following criteria:
- New development projects only
- Full planning in place is preferred but consideration can be made for deals without planning
- UK Wide
- Must be an experienced developer with a proven track record – If not we will accept a partner who has experience
- Minimum 25% profit on cost
- Credit profile, not a problem
- Build completed within 24 months
- GDV £2 Million – £10 Million
Advantages of Equity Development Finance
The main advantage of Equity and Joint Venture Development funding is that the developer may not need to put any cash into a deal and could, therefore, develop a profitable opportunity that would otherwise not be completed.
- Where the traditional Senior Debt Lenders limit the lending to 65% of total costs, Joint Venture Development funding allows the lending to stretch to 100% including land acquisition, hard costs, and soft costs
- Because the fund participates as a 100% joint venture partner, they assume nearly 100% of the project risk until completion or stabilization.
- Expert advice and invaluable experience can be provided by the equity investor
- Allows the developer to develop more projects at a time as their funds are not tied up in one particular deal.
- The developer does not need to service any interest at any stage during the project
- Typical profit share for a developer can range from 25% to 50% depending on the specific project
- Flexible structures can be designed where ratchets are included to enable the developer to maximise profits when certain sales targets are achieved
Joint Venture and Equity investment next steps
If you are a developer with a great opportunity but no cash to put into the deal then send an email to email@example.com with the development appraisal, cash flow, executive summary including previous projects and the plans if available.
If you are an equity investor looking to for the right development opportunity and developer then send an email firstname.lastname@example.org with the deal size, type, and location that you are looking to invest in
If you own some land or a potential development project where you would like to leave the equity within the property and find a suitable partner to develop the opportunity together then send an email to email@example.com
with the property details and the background to the deal.
If you wish to speak to one of our experienced brokers, please do not hesitate to contact us on 0207 385 2816 where we will be happy to assist