Equity & Joint Ventures
in Buxton

The economics of equity and JV structures should be evaluated against the alternative of using more debt. If senior debt at 65% of costs plus mezzanine to 85% would leave you needing only 15% equity, a full JV giving away 40-50% of profits may not be the optimal structure. The calculation changes for larger schemes where even 15% represents a significant capital commitment.

Developer profit shares in JV structures typically range from 50-70%, depending on the developer's contribution (land, planning, management expertise) and the equity partner's perception of project risk. Deals where the developer contributes a consented site with strong comparable evidence command higher profit shares than earlier-stage opportunities.

Equity partners typically require more extensive reporting and governance than debt providers. Expect monthly project reports, regular site visits, and approval rights over material decisions (contractor appointments, specification changes, pricing strategy). Building this into your project management process from the outset avoids friction during the development phase.

The region's industrial heritage creates abundant conversion opportunities, from Victorian mills and factories to post-war commercial buildings with permitted development potential. Build costs are competitive, and the presence of multiple universities drives consistent demand for purpose-built student accommodation and HMO conversions.