100% JV Development Finance for First-Time Developer

Deal Structure

• 100% Loan to Cost (LTC)
• £700,000 development finance facility
• Facility covered the total project costs
• £1 million Gross Development Value (GDV)
• 50/50 profit share

Deal Summary

Our client identified a development site near Brighton with planning permission for two houses.

He had been searching for the right development opportunity for some time. However, this was his first property development project.

Although the client had not previously completed a development of his own, he had extensive experience within the property industry. He had worked as a Project Manager and managed numerous construction projects for other property professionals.

The client needed funding that could cover the full project cost. We therefore introduced him to one of our specialist joint venture development finance funders.

The funder was impressed by the development opportunity and took the time to visit the site. They also met the client to understand his experience and project management capabilities.

Although this was the client’s first development, he could demonstrate a strong track record of managing builds for other property professionals. This gave the funder confidence in his ability to deliver the project.

The funder agreed the deal in principle during the initial meeting. From there, the transaction moved quickly towards completion.

We secured 100% Loan to Cost development finance, providing a £700,000 facility to cover the total project costs. The development had an anticipated £1 million GDV, with the client and JV funder agreeing a 50/50 profit share.

The transaction completed quickly, and our client is now on site progressing the development.

The Outcome

This case demonstrates that development finance for first-time developers can be available where the applicant has relevant property experience, even without a previous track record of completing their own developments.

By introducing the client to the right JV development finance partner, we helped him secure funding for the entire project cost and take his first development from planning to construction.

If you are looking for 100% development finance or joint venture property finance, Positive Commercial Finance can help identify specialist funding partners and structure a solution around your development and experience.