Toolkit

JV Analyser

Compare a development joint venture against senior debt — profit waterfall, crossover GDV, developer return on equity.

SCHEME & TERMS
DEVELOPER EQUITY (BALANCE)
£849k
Funder pref10% p.a.
Developer profit split60%
Term18 months
Senior debt rate (compare)11% p.a.
LANDOWNER OVERAGE
Developer outcome — JV vs senior debt
UNDER JV
£553k
65.2% on equity
UNDER SENIOR DEBT
£904k
106.5% on equity
At this GDV, the developer is £351k better off under Debt. The scheme's profitable enough that a JV gives away upside; debt is cheaper.
LENDER NARRATIVE

The proposed joint venture structure comprises funder equity of £1.20m and developer equity of £849k, on development costs (excluding finance) of £2.05m and an indicative GDV of £3.15m. The funder receives a 10% p.a. preferred return over 18 months, with residual profit split 60% to the developer and 40% to the funder. At the base-case GDV, gross profit after costs is £1.10m, yielding £553k to the developer under the JV (65.2% on equity) versus £904k under a senior debt comparator at 11% p.a. On these assumptions the developer is £351k better off under senior debt. Observational illustration only — not a lending recommendation or offer of finance.

JV PROFIT WATERFALL
GDV£3.15m
Development cost (excl. finance)−£2.05m
Gross profit£1.10m
Funder pref (10% · 18mo)£180k
Residual£922k
→ Developer (60%)£553k
→ Funder (40% + pref)£549k
FUNDER RETURN
JV — total£549k · 45.7%
JV — annualised (simple)30.5%
As senior debt — interest£198k · 16.5%
JV uplift vs lending£351k
DEVELOPER EQUITY METRICS
Equity multiple (MOIC)1.65×
Equity IRR (annualised)39.7%
−10% GDV stress — developer JV return£364k · 42.9% on equity
Base case — developer JV return£553k · 65.2% on equity
DEVELOPER RETURN ON EQUITY vs GDV
CROSSOVER ≈ £2.27m GDV
Developer under JVDeveloper under senior debtdotted grey = current GDV

Observational model · all-equity JV, profit-share waterfall · equity IRR from MOIC over term · loss shared pro-rata to capital · not a lending recommendation.

YOUR OWN DEAL

Modelled on a sample development scheme. Run the same waterfall on your site and attach a lender-ready pack.

Run this on your own deal →See a full lender pack →

How it works

  • A JV pools capital and delivery — one side funds, the other brings the site and runs the scheme.
  • Returns follow a waterfall: capital back, preferred return, then profit split.
  • Compare the model above against senior debt to see where the developer is better off at this GDV.

Overview only — not legal, tax or lending advice.