Our investment model is based on you buying shares (equity) in a newly formed UK limited company (SPV), solely set up to own the title of the property. The targeted percentage return remains the same whether you invest £20,000 or £1,000,000+, as all funds are aggregated.
Your equity returns are determined by leveraging debt. When combining senior with mezzanine debt, they typically cover 90% of the overall project cost. Our equity investors cover the remaining 10% for 40% of the profits, which is how the targeted return on your capital is determined.
When you invest, you own shares in the project SPV with your rights secured by a shareholders agreement and subsequent rights. Matters requiring consent are set at 81%, which means all joint venture partners (Developer, investors and JaeVee) have a say.
As a shareholder, you will receive a share of any return, whether it's the income, capital growth or sales profit in relation to your investment. Your exit is dependant on the developer achieving the exit set from the outset. If there are any complications JaeVee steps in and ensures it's achieved.
A property developer, will submit a proposal in return for 100% funding and project management support. JaeVee's investment team will assess the proposal using our predefined due diligence checklist (which you're able to see). We assess the yield sustainability, market analysis and alternative exit strategies. Upon the proposal being accepted, the property developer will work with our in-house project managers in delivering the project and achieving the exit strategy.
JaeVee is the facilitator, asset and project manager there to minimise risk and ensure exits are successfully achieved. It bridges the gap between property developers, senior debt lenders and equity investors. Investor security and control is achieved by all three parties (Property developer, investor and JaeVee) holding shares in the company, and entering into a number of documents such as a shareholder and development agreement. Should the property developer not perform, JaeVee is able to take over and finish the project.
Browse the JaeVee property investor platform and select 'Invest' when you see a project you wish to invest in. It takes minutes to add funds and confirm the amount you wish to invest (minimum £20,000). Once you've invested, JaeVee completes the rest of the requirements (such as the senior debt, insurance and legals) with its inhouse project management team assisting the property developer throughout. Monthly updates are uploaded to the platform thus allowing you to login anytime, anywhere to watch your investment come to fruition. Not stopping there, we support the property developer in successfully achieving the exit strategy.
Our model works by allowing property developers to build and deliver new homes via a joint venture between ourselves and your capital.
TThe property developer will hold either 40% or 50% of the SPV, with their duties controlled via the shareholders agreement with matters requiring consent being items such as not being able to sell the properties for less without the collective agreement of JaeVee or yourselves, as investor shareholders.
Our model is exit-orientated, meaning the developer has to achieve the exit in order for them to earn 40%-50% 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.
When the developer opts for our 50% profit model, the project management has to go through JaeVee's sister company, Hatch. These funds are paid to Hatch via the senior debt lender using the professional fee fund which is allocated towards each development.
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.
We retain 10%-20% of the net capital growth or rental income. It is paid to us either at the end of the investment term or during (if rented). As each project is held in a separate SPV, corporation tax will be payable which is displayed on the feasibility study prior to you investing.
We act as the Employers Agent for all the design and build construction contracts entered into. We act on behalf of the client, which will be the SPV, as the contract administrator reviewing interim drawdowns, monitoring and reporting on the principal contractor and finalising accounts upon completion of works.
This 5-10% fee covers the cost of raising funds, extensive due diligence, deal structuring, compliance, corporate governance, and marketing. The fee is added to the total acquisition costs and is borne as an SPV cost.
As with all property investments, there may be unforeseen costs but we do our best to mitigate these, including utilising the boost fund. The boost fund is 1% of the purchase price of the property which is held within the SPV bank account. Again, this fund is already taken into account thus not affecting the projected returns to you.
Last updated 16/12/2020
Last updated 20/11/2020
JaeVee is a trading name of Estateducation Ventures Ltd (FRN797322), which is an Appointed Representative of Prosper Capital LLP, which is authorised and regulated by the Financial Conduct Authority (FCA) (FRN453007).
Estateducation Ventures Ltd is registered in England & Wales with company number 10172481. The registered office of the company is Studio 9 Netherconesford, 93-95 King Street, Norwich, NR1 1PW.
Estateducation Ventures Ltd (10172481) undertakes both regulated and unregulated business. Business activities described in the ‘Invest’ section of this website are considered regulated business. All other sections are considered unregulated. Note that senior debt and mezzanine finance is arranged by Teal Finance Ltd (registered in England and Wales no. 11305739), which is authorised and regulated by the Financial Conduct Authority (No. 923626).
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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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