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100% Funded Development Finance: Joint Venture No Profit Share
Positive Commercial Finance specialises in 100% development finance and flexible joint venture structures. This case study shows how we delivered a highly advantageous deal for an experienced developer.
The Opportunity
The client agreed a deal with a landowner to defer 50% of the land purchase price until the end of the scheme. The developer therefore needed funding for 50% of the land cost plus 100% of construction and professional fees — effectively a Joint Venture with zero cash input from the developer. Additionally, the entire development of 20 flats was pre-sold to a Housing Association, providing certainty on GDV but at a discounted price that left slim margins.
Our Solution
We found a specialist funder who:
- Funded 100% of project costs
- Did not require a profit share (despite the JV nature)
- Charged no exit fee
The lender was comfortable due to the fixed pre-sale, demonstrated build costs (price per sq ft), and the fact that groundworks were already completed.
Deal Structure
- Loan to Gross Development Value (LTGDV): 63%
- Funding: 100% of project costs
- Interest Rate: 1.25% per month (interest retained)
- Arrangement Fee: 3%
- Exit Fee: None
- Term: 12 months
The Outcome
The developer secured full 100% funding with no cash contribution, no profit share, and no exit fee — an excellent result on a slim-margin scheme thanks to the Housing Association pre-sale. The client was delighted with the funding package.
Contact
John Waddicker On 07974 703375 or message here
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