Joint Venture Finance | W1 Finance | Bridging Loans

Joint Venture Development Finance

Joint Venture (JV) Development Finance offers up to 100% funding for new property development projects, making it an ideal solution for experienced developers seeking capital without the need for upfront investment. At W1 Finance, we understand that developers often have their capital tied up in other projects. If you have a promising development opportunity but lack the funds for a deposit, 100% project funding through JV development finance could be the solution.

We specialize in providing access to tailored JV finance solutions, helping developers expand their portfolios through partnerships with investors and lenders. If you're ready to explore up to 100% JV financing for your project, our team is here to guide you through the process and create a plan customized to your needs.

Book a Call

What Is Joint Venture Development Finance?

JV Development Finance is a funding solution that covers 100% of the costs for new property development, typically used for residential projects like new builds or conversions, though it can also apply to mixed-use commercial developments. This type of financing enables developers to access the necessary capital while leveraging the expertise and resources of their financial partners. The major benefit is that developers don’t need to contribute any capital upfront - lenders cover all costs, from land acquisition to construction materials and labor.

In exchange for covering these costs and taking on the financial risk, lenders usually require a significant share of the project’s profits, typically 40-50%. While interest rates are higher than traditional finance options, the benefit for experienced developers is the ability to minimize financial risk while maximizing potential returns. Due to the higher risk for lenders, JV development finance is generally only available to experienced developers with a proven track record of successfully completing similar projects.

Contact Us

Why Developers Might Need 100% Development Finance

JV finance, also known as 100% development finance, offers several key advantages:

No upfront capital required: Developers can undertake projects without having to invest their own money, making it an attractive option for smaller developers or those with existing portfolios yet to yield returns.
Shared risk: JV finance allows developers to share project risks with a partner, offering a safety net against unexpected costs or delays.
Access to additional expertise: JV partners often provide valuable insights into construction, marketing, and sales, helping to enhance the project's success.

How JV Finance Works

Upon approval of your application, a special purpose vehicle (SPV) is established between you and the JV funder. Funds are released in stages as the project progresses, tied to specific milestones. Once the development is completed, units are sold according to your exit strategy, and profits are split as agreed with the lender after the loan is repaid.

Who Qualifies for JV Development Finance?

JV finance is designed for experienced developers who have successfully completed comparable projects. While these developers typically have strong financial positions, they may need extra capital to manage multiple projects simultaneously.

For equity investments, lenders typically charge interest as funds are drawn and agree on a profit share - often 50/50 - once the project is complete.