+
CLOSE
+
CLOSE
Register

By submitting this form you confirm that are happy to submit your data, which will be used solely for the purposes of my above enquiry

+
CLOSE
Quick Enquiry

By submitting this form you confirm that are happy to submit your data, which will be used solely for the purposes of my above enquiry

Joint Venture Finance

If a developer is lacking the financial means to access a more traditional finance product, then a Joint Venture could be considered. Traditionally this involves 100% funding by an investor or partner, for a profit share. We have numerous lender partners & investors who will consider 100% funding the right project, with profit share determined by the individual lenders assessment of risk, amongst other things. Interest will also be charged on the monies utilised. 
The developer will be responsible for funding all up-front costs including the planning consent and professional reports, though these can usually be charged back to the scheme. 
 
Naturally a developer needs to be sufficiently experienced and able to demonstrate their success via previously delivered schemes. 
 
Given their unique nature, Joint Ventures are a kind of partnership and are all agreed on a case by case basis. At Positive Commercial Finance we have facilitated many Joint Venture deals for our experienced developer clients.

What is a Joint Venture?

A “JV” is where a third party puts in the short-fall or money to get a property development project off the ground. This could be where a Senior Debt lender provides a loan facility, and then a JV partner puts in the rest of the cash to make the deal work, or where a JV partner funds 100% of the total project costs. Given the JV partner is putting all the required cash in (and therefore taking all the risk), naturally they’ll want a share of the profits, and usually that’s around the 50% mark.

Can I get a Joint Venture for my property development?

Provided you have sufficient development experience, or a very strong professional team around you to mitigate for any lack of personal, hand-on experience, and provided that the project has enough profit in it, then in principle, “yes”, you can get a JV deal.

If a developer is lacking the financial means to access a more traditional finance product, then a Joint Venture could be considered. We have numerous lender partners & investors who will consider 100% funding the right project, with profit share determined by the individual lenders assessment of risk, amongst other things. Interest will also be charged on the monies utilised. The developer will be responsible for funding all up-front costs including the planning consent and professional reports, though these can usually be charged back to the scheme.

Very often, a JV partner will need Detailed Planning Permission to be in place. JV partners on the whole do not like planning risk, so they prefer a developer to have an “oven-ready” project to bring to the table.

What is the structure of a Joint Venture deal?

Given the JV partner is putting all the cash in, and therefore taking all the financial risk, they will expect to be in control of the Special Purpose Vehicle (SPV) which the project will sit in. So, they’ll certainly need to be the majority shareholder, with often both the JV partner and the developer being Directors of that company. A specialist solicitor will create a Joint Venture contract between both parties, which would outline the role each party plays, and usually that points out that the JV partner puts the cash in for a specific return, and the developer completes the project on time and within budget.

Naturally a developer needs to be sufficiently experienced and able to demonstrate their success via previously delivered schemes.

Given their unique nature, Joint Ventures are a kind of partnership and are all agreed on a case by case basis. At Positive Commercial Finance we have facilitated many Joint Venture deals for our experienced developer clients.

Can we help find a JV partner?

Get in touch, and be ready to provide a detailed scheme appraisal and supporting information, with your own CV/ track record, so we can make a formal assessment.

If you want a fast, flexible and reliable service, try
Positive Commercial Finance.

QUICK ENQUIRY

Our other products

Created with Sketch. Created with Sketch.

DEVELOPMENT

Created with Sketch. Created with Sketch.

MORTGAGES

Created with Sketch. Created with Sketch.

SME AND BUSINESS

Created with Sketch. Created with Sketch.

COMPARE FINANCE

Sign up to our newsletter
© Copyright 2019 | Positive Commercial Finance | Sitemap