- Joint Venture Investments
- How it Works
How it Works
We regularly launch a range of unique and diverse property development equity and mezzanine investment opportunities, which have been deemed profitable by our investment analyst team and supported by both a red book valuation and initial monitors report from the senior lenders professionals, allowing you to build an investment portfolio with just the click of a button; anytime, anywhere.
View Property InvestmentsHow Our Investment Model Works
Our investment platform offers two structured pathways for property development investment, each tailored to balance security, control, and profitability. Designed for high-net-worth individuals, sophisticated investors, SIPP and SSAS pension investors, and those seeking Shariah-compliant options, our models make it easy to participate in high-quality property development.
1. Debt-Free Syndicate Investment Model (DFSIM)
Our Debt-Free Syndicate Investment Model is built on a fully equity-funded approach, removing the need for third-party borrowing. This structure eliminates interest-bearing debt, reduces financial risk, and enhances returns for investors.
How It Works:
Project Identification and Acquisition
We carefully select property development opportunities with high growth potential. Once identified, the property is acquired through a Special Purpose Vehicle (SPV) created specifically for that project.
Investor Funding
Investors are invited to join the DFSIM through capital contributions, which are used directly for project costs. Funds are raised in tranches, aligning with project milestones to ensure efficient capital allocation.
Secured Investment
Your investment is secured by a first charge on the property, held by a Security Trustee on behalf of all investors, providing prioritized claim over assets. Investor funds are held in an escrow account managed by an independent Escrow Agent, only released upon verification of completed work by an Independent Monitoring Surveyor.
Returns
DFSIM investors receive a fixed 8% annual return on their investment, as well as equity in the project, allowing them to share in any development profits. This structure combines predictable income with growth potential, making it ideal for risk-aware investors.
Exit Strategy
Upon project completion, the property is sold on the open market. Sales proceeds are used to return investor capital and distribute profits. With an anticipated 18-month timeline, this model offers a defined path to liquidity.
Benefits for Investors:
- Debt-Free Stability: No reliance on bank loans, meaning less risk and no interest payments.
- Shariah Compliance: Fully equity-based structure aligns with Islamic finance principles.
- Secure Returns: 8% fixed annual return plus equity upside, providing both income and growth.
2. Equity Investment in Property Development
The Equity Investment model allows investors to directly hold shares in the SPV that owns the property project. This model is ideal for those seeking direct equity exposure, shareholder rights, and alignment with project outcomes.
How It Works:
SPV Creation and Project Funding
An SPV is created to own the property development project, and equity investors buy shares in this SPV, making them direct stakeholders in the project.
Shareholder Rights and Control
As a shareholder, you benefit from full participation in project decisions requiring investor consent. This includes control over major project activities, ensuring transparency and alignment with your investment interests.
Profit Participation
As the project progresses and reaches completion, equity investors share in the profits based on their percentage of ownership. This allows investors to benefit from the financial success of the project, with returns tied directly to development outcomes.
Exit Strategy
Once the property is developed, it is sold on the open market. Profits from the sale are distributed to shareholders, providing a clear and timely exit from the investment.
Benefits for Investors:
- Direct Equity Ownership: Hold shares in the SPV and gain from capital appreciation and profit distribution.
- Shareholder Rights: Influence key project decisions and enjoy greater transparency and alignment with your goals.
- Suitable for SIPP and SSAS Pensions: Aligns well with pension investment requirements, providing diversification into real estate.
Why Choose Us?
Our investment models are structured to provide maximum security, profitability, and alignment with investor values. With robust oversight, clear timelines, and a commitment to ethical finance, our models are built to meet the needs of high-net-worth, sophisticated, pension, and Shariah-compliant investors.
If you’re ready to explore secure, profitable investment opportunities in real estate development, contact us today to learn more about how our models work and find the right fit for your investment goals.
Get In TouchJaeVee (JV) Partners Explained
JaeVee
Main Contractor
Investor (Equity & Mezzanine)
We're Transparent About Our Costs
As the sourcer, facilitator, property developer and project manager we have costs to cover to ensure we continue to bring profitable property development equity and mezzanine investment opportunities to you to invest in. As our platform offers investors accessibility, protection and control, it also provides the comfort of transparency. As does our declaration of the costs we have to cover.
Project management
In order to keep our finger on the pulse, the project management has to go through JaeVee's sister company, Hatch Project Management Ltd.
The project management fee forms part of the professional fee pot allocated towards each project's costs. Typically, a project management company is paid 2.5% of the construction contract sum with the payment spread out evenly across the construction programme. Therefore ensuring there’s always an allocation throughout for project management costs.
The professional fees, along with the construction cost and contingency fund are usually covered by the senior debt lender’s facility.
They form part of the overall project cost and are borne by the SPV. The professional fee fund is displayed within the feasibility of each project, prior to you choosing to invest.
Employers Agent
In some of our developments, we act as the Employers Agent for all the design and build construction contracts entered into. Sometimes we appoint third party Employers Agents to act, ultimately it depends on the location of the project. The Employers Agent is a key role as it reviews the main contractors payment applications on a monthly basis; in order to agree upon valuations and issue payment instructions.
The Employers Agent acts on behalf of the client, which will be the SPV, as the contract administrator reviewing interim drawdowns, monitoring and reporting on the principal contractor throughout the programme to protect the cost position of the SPV.
Typically, an Employers Agent is paid 1% of the contract sum, with the payment spread out evenly across the construction programme. Therefore, just like project management fees, ensuring there’s always an allocation throughout for employers agent costs.
It’s covered within the professional fees allocation offered by the senior debt lender’s facility, along with the construction cost and contingency fund.
Profit share
We retain 50%-60% of the net capital growth or rental income. It is paid to us either when the project successfully exits or during (if rented). As each project is held in a separate SPV, corporation tax will be payable which is taken into account and deducted from all forecasted returns to equity investors.
Property Development Cost
Our property development cost covers the cost of raising funds, extensive due diligence, deal structuring, compliance, corporate governance, and marketing. The cost is added to the total acquisition costs and is borne as an SPV cost. It forms part of the equity and mezzanine raised on day one.
Property Sourcing Cost
As we employ an inhouse development origination team, it’s important we cover the property sourcing cost to ensure we continually bring to you the most profitable and risk averse property development investment opportunities. This cost is added to the total acquisition costs and is borne as an SPV cost. It forms part of the equity and mezzanine raised on day one.
Main Contractors interest
Whilst not a direct cost JaeVee incurs, our model works by providing main contractors with an incentive they don’t typically get offered. Whilst it’s common practise for main contractors to build for market rates, our incentive of offering a cut of the development profits - should they deliver on time and to budget - helps to ensure they prioritise delivering our projects with them.
The main contractor will earn up to 10% of the development profits should they deliver on time and to budget. Their 10% bonus comes from JaeVee’s side therefore not impacting on the 40% equity investors are entitled to.
Should the main contractor not perform, as they are paid on reimbursement terms, we are able to reassign the contract to another contractor which is why it’s vitally important we always budget building to market construction rates.
Our model is exit-orientated, meaning the main contractor has to achieve the exit in order for them to earn 10% of the profits generated.
All our projected returns are shown net of fees and corporation tax so your targeted returns will have already taken these costs into account.
Other Costs
As with all property developments, there may be unforeseen costs but we do our best to mitigate these, with the utilisation of the boost fund. The boost fund is 1% of the purchase price of the property which is held within the SPV bank account. The contingency fund, offered by the senior debt lender, is also there to assist with any unforeseen costs. Both this and the boost fund are already taken into account as part of the developments costs thus not affecting the projected returns to you.
Property Development Investment Opportunities
Browse our diverse opportunities below, signup to view the full due diligence
and begin investing in your preferred developments.
Open
SPV1034 - Townsend Nurseries, Bridewell Street, Clare, Sudbury
Sudbury, Suffolk, CO10
20 Units | Sell For Profit Strategy
Shares Loans
Open
SPV1032 - Former Cavendish Hotel, Felixstowe
Felixstowe, Suffolk, IP11
62 Units | Sell For Profit Strategy
Shares
Open
SPV1031 - Well House, Brightlingsea
Colchester, Essex, CO7
64 Units | Sell For Profit Strategy
Shares
Open
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SPV1027 - Duke St Ipswich PBSA
Ipswich, Suffolk, IP3
177 Units | Sell For Profit Strategy
Shares Loans
Project Launch Webinars
From The Blog
Unlocking Opportunities: Why East of England Property Investment Is a Smart Move.
Last updated 24/05/2024
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This website is operated by the JaeVee Group of Companies. Webpages containing share offers will be hosted by the relevant Group Company that is issuing the shares, as identified on the relevant webpage. Webpages containing mezzanine debt offers will be hosted by JaeVee Holdings Ltd.
JaeVee is a trading name used by all companies within the JaeVee Group of Companies, including JaeVee Holdings Ltd. JaeVee Holdings Ltd is registered in England & Wales with company number 10172481. The registered office of the company is 3rd Floor 86-90, Paul Street, London, England, EC2A 4NE.
JaeVee Holdings Ltd (10172481) undertakes unregulated loan brokerage business that does not entail consumer credit or regulated mortgages. Arrangements by Group Companies to issue their own shares constitute unregulated business pursuant to Article 34 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO).
Information about investments is only available to investors who demonstrate that they qualify as high net worth individual investors or sophisticated investors or otherwise fall within categories of investor who can receive financial promotions from unregulated persons in accordance with the requirements of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (FPO). Property investing carries the risk of losing some or all of the capital invested. JaeVee does not provide investment advice and investors who are in doubt about whether investing is right for them should consider seeking advice from an appropriately qualified professional adviser.
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Investing in JaeVee involves risk, including loss of capital and illiquidity and it should be done only as part of a diversified portfolio. Investments made through JaeVee are not covered by the Financial Services Compensation Scheme (FSCS). Please read our full risk warning before deciding to invest.
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