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Everything you need to know in one place

How does JaeVee work?

JaeVee stands for a joint venture which is between us as the property developer, the main contractor delivering the scheme and our equity and mezzanine investors. We leverage senior debt with a mixture of equity and mezzanine with an SPV being formed to act as the borrower and client. The senior and mezzanine debt interest is borne by the SPV as it forms part of the project costs. The net profits, after payment of the senior debt, mezzanine debt (if applicable) and equity invested, will be distributed according to each parties shareholding. Corporation tax will also be deducted.

What’s in it for JaeVee?

JaeVee JaeVee is the property developer behind each development in the East Region of the UK. Upon delivering upon the profits earned by the development when reaching practical completion, we receive 60% of the profit with 10% (leaving us with 50%) going to the main contractor as long as they have delivered on time and to budget. Therefore if the main contractor isn’t successful, neither are we. Hence why we project manage all developments via our sister company, Hatch Project Management to ensure we remain on programme throughout.

As the main contractor or housebuilder what’s my profit share?

You will receive 10% of the profit due from the project, be it sale, rental or business income on the basis you deliver on time and to budget. You will be appointed under JCT D&B terms with the contract sum being for market prices as dictated by BCIS. We’re not of the mindset to try and get you to do things on the cheap, as we realise the profits only come once you get there, not when you run out of money half way through! We do not charge interest on equity; only the senior debt and mezzanine debt facilities charge interest.

Great, how do I send you my proposal?

Simply email the feasibility to acquisitions@jaevee.co.uk. Should we like the property and get an offer accepted, we will submit the proposal on our platform internally.

This is how it works from start to finish.

What type of properties does JaeVee develop?

We develop both residential and non-residential schemes. Please review our criteria page for more information.

Will you invest in properties without planning permission?

Ideally, we like to stick to opportunities that have planning permission or permitted development rights. If planning is due to be issued (application submitted and validated), we will also look at it and potentially approve subject to the planning permission being issued.

Can JaeVee help me with the exit strategy?

Yes. As the main contractor, you’re not required to achieve the sales. All you need to do as part of the joint venture is reach practical completion on time and to budget. We take care of everything else including working with the appointed sales agents to sell all the units to homeowners, single let landlords or first time buyers. It's important to remember we're only successful when you are so it's in both our interests for you to succeed.

So what will JaeVee do from start to finish?

We oversee the lifecycle of the development from start to finish to ensure each scheme achieves an exit. Find out how it works.

If I don’t want to do the work of the main contractor, can I invest equity, mezzanine or both into a project?

If you’re a high net worth or sophisticated investor, you can invest in the project(s) of your choice via our joint venture equity platform.

Do I need to provide a personal guarantee?

Previously, our property development joint venture partners, directly responsible for delivering the scheme, were required to provide a personal guarantee, which was capped at 20% of the senior and mezzanine debt facility amount. On average the total debt amount is around 60-65% of the GDV.

Joint venturing with JaeVee helps to avoid a scenario where the senior debt lender calls in guarantees because we monitor the progress on a monthly basis. Therefore if it appears you're not on schedule, we would step in and take over the project to protect our investors equity and mezzanine investments.

Do you have a minimum or maximum GDV?

Essentially, this is dictated by your experience and track record. If you have a track record in delivering 30+ unit schemes, then we will joint venture with you (upon successful due diligence), on 30+ unit schemes. If you have a proven track record delivering 10+ unit schemes, we can support you on your first 20-25+ unit scheme. In terms of individual dwelling sales, we prefer the sales price to be less than £1m+. Unless you're able to demonstrate a regular flow of sales for £1m+.

What's the minimum return on investment you aim to achieve for each project?

We look for a minimum return on cost of 20% pre-finance.

What timescales do you work within for each project?

We generally look for an exit within 6-60 months, which is measured against total capital in, security, risk, inflation, macro / micro economics and profitability.

How do you assess property opportunities?

Our analyst team has predefined due diligence checklists for each property development scheme presented to us.

Who pays for the red book valuation, initial report and searches?

We do. We only develop in the East of England which is where we’re from so we know the area like the back of our hands. To get to a stage of paying for a red book valuation, initial report and searches means we would be pretty confident at that point our numbers are going to stack up.

Do I need to live near the project I’m the main contractor for?

Ideally, being that you'll be the lead property developer or housebuilder responsible for delivering the project, we recommend that you live within a 50 mile radius of the proposed project.

Am I able to charge project management fees?

In short, no. JaeVee, via its subsidiary company, Hatch Project Management, manages all of our projects in the East of England to make sure they remain on time and to budget. We’re of the mindset that we like to control our own destiny.

How long does it take to obtain an approval?

When you submit a proposal it's important to provide all the requested documents in order for JaeVee to review. Our service level agreement in reviewing proposals to make decisions is 5 working days from the validation date. Therefore, it's important you respond quickly to our validation requests, which will outline any documents needed to validate your proposal.

What happens if there are any delays to a project?

We appreciate there can be delays in the world of property development. Some won't be in your control, whereas some will. Typical delays can be caused by delays in planning conditions being submitted, detailed designs not being issued, poor procurement schedules, and programmes not being kept to.

We help to mitigate those by overseeing the programme from start to finish, though as the main contractor the onus is on you to do the work. Should we feel there is neglect being applied, we serve you with a rectification notice which gives you 4 weeks to rectify the issue. Ultimately, everything is in your hands.

To provide some guidance, this is why it's vitally important to select a competent and experienced professional team that's not made up of one man bands. We assist you from the outset in making sure the correct professional team has been selected and all for market prices.

What is the structure of the joint venture?

A newly formed UK limited company is created to act as a Special Purpose Vehicle (SPV) for each venture. As the main contractor, you will enter into a JCT D&B contract with a schedule of amendments issued detailing the terms as to how you earn 10% of the development profits for delivering on time and to budget.

Will I be credit checked?

As you'll be the main contractor or house builder, as part of our due diligence, JaeVee will conduct a credit check to confirm credibility as part of our duty of care to our debt partners and investors.

Does JaeVee provide an online property development course?

Yes. Please see our online learning system.

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