Speculative Development Equity Funding…

All sectors considered apart from, at the time of writing, hospitality unless converting the hospitality venue to other uses. The fund will take planning risk and consider distressed situations.

The fund will input 90% of the equity required, with a minimum cash input of £2 million and maximum of circa £20 million.

For example: A project costs £15 million, senior debt of £10 million, shortfall of £5 million which will be covered by way of £4.5 million from the fund and only £500,000 from the client/developer.

The fund looks for projects with profits of approximately 30% on project costs.

A joint venture would be set up with the developer with 50/50 voting rights.

The developer would be paid a development management fee as well as an asset management fee.

The developer would receive 40% of the project profits subject to the final project IRR.