Glossary definition
Joint Venture
A partnership arrangement between a developer and a capital partner to deliver a property project, typically structured so the developer contributes expertise and management while the equity partner provides the capital. Joint ventures usually involve a profit-sharing arrangement with the equity partner receiving a preferred return plus a share of profits.
Definition
A partnership arrangement between a developer and a capital partner to deliver a property project, typically structured so the developer contributes expertise and management while the equity partner provides the capital. Joint ventures usually involve a profit-sharing arrangement with the equity partner receiving a preferred return plus a share of profits. JV structures allow developers to take on larger projects without tying up their own capital.
See also
Closely related terms.
Equity
The developer's own capital contribution to a project, sitting at the top of the capital stack and bearing the highest risk but also receiving the residual profit.
Capital Stack
The total structure of funding used to finance a development project, arranged by seniority from senior debt at the bottom through mezzanine finance to developer equity at the top.
Mezzanine Finance
A layer of debt that sits between the senior loan and developer equity in the capital stack, secured by a second legal charge on the property.
Further reading
Guides that touch this term.
Guide
The Capital Stack in Property Development: How to Structure Your Funding
A comprehensive guide to understanding and structuring the capital stack in UK property development, from senior debt through mezzanine to equity contributions.
9 min read readReadGuide
How Does Development Finance Work? A Complete Guide for UK Developers
A ground-up guide to how development finance is structured in the UK, covering loan mechanics, drawdown schedules, monitoring surveyors, and what lenders look for in your application.
5 min read readRead
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