The majority of mid-market and larger residential development schemes are delivered by joint ventures between experienced development partners and an equity partner. Other often more passive equity capital is available to smaller developers and investors acquiring or delivering projects worth up to £20m. These structures enable the sponsor to share the various project risks and also preserve capacity to work on a greater number of transactions at once.
- Strong JV equity partner appetite for residential development transactions
- Up to 100% LTC available although typical structures involve sponsor co-investment
- Terms of joint venture agreements range widely
- Appetite exists from high net worth individuals, private family offices and dedicated real estate private equity funds
- Highlights include sourcing £15m of family office JV capital for a student accommodation developer