What is Joint Venture/Equity Development Finance?
Joint Venture/ Equity Funding provides experienced house builders with up to 100% loan to cost.
Equity/Joint Venture Partners typically invest in the development through shares in a specially created SPV (Special Purpose Vehicle) or through a profit share agreement. Investment partners require the house builder to provide guarantees on cost overruns in order to protect their return.
For example, BLG can provide the senior debt loan for the development to 80% costs and offer an additional 20% Joint Venture/ Equity funding through a High Net Worth investor partner.
Each application is assessed and negotiated on its individual merits but the following criteria apply:
|Loan term:||12 to 24 months|
|Developments:||Houses, flats, new build, conversions, office to residential and property with a commercial aspect considered|
|Site location:||England, Scotland and Wales in areas with established demand for new homes|
|Borrower:||Property developer / house builder with established track record|
|Costs:||Typically: Arrangement fee, interest rate, exit fee, valuation, legal, monitoring surveying fees and non-utilisation fee (for committed but non-utilised capital)|
|Planning:||Sites to have outline planning in place.|
How to Apply
Call 0845 465 6500 or Send us a message to be put in touch with your nearest BLG Regional Director.
Talk with BLG, our business is helping you build
Looking for an alternative development funding?
BLG provides a full range of development funding options including Stretch Senior finance and Mezzanine finance. We have the experience and capability to offer the best funding solution to meet your requirements.