JV Equity Partnership

A developer with an excellent track record owned a prime site in Bristol with full planning for 30 residential units. The GDV was appraised at £8.5M with total development costs of £6.8M. However, the developer's capital was tied up in two existing projects and they had no available equity to contribute beyond the land value. No senior lender would fund 100% of costs without the developer putting in cash equity alongside.

We introduced a family office from our equity partner network willing to provide 100% of the development costs as a JV equity investment, with the developer contributing the land (valued at £1.7M) as their equity stake. The structure gave the developer 60% of net profits in exchange for managing the project, with the family office receiving 40% plus a preferred return of 8% per annum. We also sourced a senior debt facility at 55% LTGDV to gear the JV, reducing the family office's cash outlay.

The 30-unit scheme was completed in 22 months. Sales achieved a blended GDV of £9.1M — 7% above the original appraisal. After repaying the senior lender and the family office (including preferred return), the developer's net profit share exceeded £1.2M on a project where they contributed no cash. The family office has since committed to a further two projects with the same developer.