Equity Development Deals on Property Moose

Are you looking for more from your next investment decision?

  • Exciting joint venture opportunities where your investment runs alongside an experienced property developer
  • Potentially greater returns
  • Pre-launch notifications to enable you to carry out due diligence before the deal goes live on the platform. 

We are pleased to announce the release of an equity development opportunity to our members which will give the opportunity to share in the potential upside of the developments that we source.

We’re confident that we’ll be able to grow these offerings alongside our loan note opportunities and hope they will prove popular.

 

Joint Ventures – How the opportunities will work

These investments will see our members possibly invest in a property development project as a joint venture with the relevant developer. As part of this, the investors and developer will each share a pre-agreed proportion of the profits in the developments (typically 50:50 but sometimes can be different as specified on each deal).

These investments will rank below any secured loans on the project so the return of capital will be as followed:

  1. first charge holders capital and then returns (i.e. receive their capital and returns first);
  2. second charge holders capital and then returns (i.e. receive their capital and returns second);
  3. any costs in the development(i.e. are paid next); and
  4. profit then shared between the equity investors and the developer.

 

Returns

As returns are linked to profit, the potential returns could be higher than other opportunities, but, of course, the risk is greater. Performance is typically linked to the time period of the project and the end sales price achieved. We will provide a range of projections of returns as shown in an example table below*.

% of GDV 90% 95% 97% 100% 105%
Term £180,000 £190,000 £194,000 £200,000 £210,000
6 5.88% 12.94% 15.76% 20.00% 27.05%
7 4.71% 10.76% 13.18% 16.80% 22.85%
8 3.83% 9.12% 11.24% 14.41% 19.70%
9 3.14% 7.85% 9.73% 12.55% 17.25%
10 2.59% 6.83% 8.52% 11.06% 15.29%

*Forecasts are not a reliable indicator of future performance

The term of the project is illustrated down the vertical axis with a GDV(Gross Development Value) scale show across the horizontal axis.

By using this table you can potentially assess the risk-reward of the opportunity and stress test the investment. This table is extracted from the CC COR 1 Ltd opportunity, with 97% of GDV (Gross Development Value) being used in this example as the anticipated sales price, showing extremes to both upside and down.

As with all investments on Property Moose, your capital is at risk if you invest.

 

Pre-launch notifications

We will launch these opportunities in the same way as other deals but, if you want to be notified in advance of the launch so you can credit your wallet or do your initial due diligence, please add yourself to the pre-launch mailing list for these opportunities below.

We expect these opportunities to be very popular so want to give everyone who is interested the best chance of investing without sending too many emails to all members.

Please click here to receive pre-launch notifications.

This article was written by

Property Moose does not provide any advice in relation to investments and you must rely on your own due diligence before investing. Please remember that property prices can go down as well as up and that all figures, rates and yields are projections only and should not be relied on. If in doubt, please seek the advice of a financial adviser. Your capital is at risk if you invest. Property Moose is a trading name of DFI Financial Services Ltd which is an Appointed Representative of Resolution Compliance Limited which is authorised and regulated by the Financial Conduct Authority (no: 574048).