Joint Venture Property Development Finance
Equity and profit-share funding for developers without the cash to put into a scheme on their own. We connect experienced developers with JV partners, family offices and property-backed funds who take a profit share in exchange for the equity stake.
Profit-share JV funding for developers with the project but not the equity
Joint venture development finance is the route experienced developers use when they have the site, the planning consent and the team but lack the 15-20% equity senior lenders demand. A JV partner steps in with the cash equity, the senior lender provides the development loan, and the JV partner takes a share of the residual development profit on exit rather than a coupon.
Most JV deals split profits 50/50 after senior debt costs and a preferred return on the JV equity. Some structures front-load the JV partner with a 70/30 split until their equity is repaid, then revert to 50/50. The structure is bespoke per deal. The senior debt sits underneath the JV equity and is repaid first on sale.
Doulton runs both sides of the table. We arrange the senior debt on the scheme (typically 60-65% LTGDV from the standard development panel) and we introduce vetted JV partners and family offices who actively place equity into £500k to £30m schemes. Deals typically need an experienced developer with two or three completed schemes, a clear margin (20% on cost minimum) and a credible exit. First-time developers can access JV equity but usually need a stronger lead investor.
What makes this work in practice
JV partner introductions
Direct introductions to active JV equity partners, family offices and property-backed investment funds. We pre-screen developers and schemes so partners see only deals that fit their mandate.
Senior debt arranged alongside
We arrange the senior development loan in parallel with the JV equity. One brokerage running both lines avoids the deal collapsing because the equity partner and the senior lender are pulling in opposite directions on terms.
Bespoke profit-share structures
50/50, 60/40, 70/30 with preferred return - we have structured every common JV split. The right structure depends on developer track record, deal margin and how much skin the developer is putting in.
Limited recourse structures
Most JV partners take a deal-level position with no personal guarantees from the developer. Senior lenders typically still want a personal guarantee on cost overruns - we negotiate the cap.
GDV-rich, equity-light schemes
Where the deal has strong margin but the developer cannot fund the day-one equity, JV funding closes the gap. Most useful on schemes the developer has originated and would lose to a competitor without equity.
Multi-site JV programmes
Beyond single-deal JVs we have set up multi-site programmatic JVs where a developer and a JV partner agree a rolling pipeline of three to ten schemes on pre-agreed terms.
How it works
Scheme appraisal
We review site, planning, build cost plan, GDV and developer track record. Confirm the deal is JV-fundable and model the equity gap.
JV partner shortlist
Three to five JV partners approached with a sanitised deal brief. NDA in place before full disclosure. First indications back in 5-10 working days.
Heads of terms and senior debt
JV heads of terms agreed in parallel with the senior debt heads. Both lines sign off at the same milestone so the deal funds simultaneously.
Build and exit
Senior debt drawdowns released monthly. On sale or refinance the senior loan is repaid first, then the JV partner's preferred return and equity, then the profit split.
Talk to a JV development specialist
Send us the appraisal and your developer track record. If the scheme is JV-fundable we will line up partner introductions and the senior debt in parallel. Confidentiality assured.
Frequently asked questions
What is development finance?
Development finance funds the construction, conversion or major refurbishment of property. Lenders advance money in stages ('drawdowns') as works progress, verified by a quantity surveyor or monitoring surveyor. Total cost facilities are typical: day-one land advance plus a build facility.
How much can I borrow on a development project?
We arrange development funding from £125k to £300m+. Typical sizing is up to 65-70% of gross development value (GDV) and up to 90% of total project cost, with the balance funded by your equity or mezzanine finance.
Do I need prior development experience?
Experienced developers get the widest lender access and sharpest pricing. First-time developers can still secure funding, usually via specialist lenders, with a capable main contractor and a smaller initial scheme. We have a dedicated route for first-time developers.
What about planning permission?
Most lenders require detailed planning to be in place before drawdown of build funds. Land loans with planning gain exits, outline-only sites and permitted-development conversions can also be funded, but terms and LTVs reflect the higher planning risk.
How is interest charged on development finance?
Interest is almost always rolled up and repaid on exit from sales or refinance, so your project does not need to carry monthly repayments during the build. Lenders size the facility to include a build-in interest reserve.
Explore related pages
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