Regulated Business

How Do We Mitigate Risk

We currently tend to receive around 100 proposals per month from developers looking for joint venture property development finance. Each of those proposals are assessed using our internal risk management process.

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Risk Management

Risk is managed by sticking to traditional open market exits using conservative sold comparables to form the targeted GDV (Where the GDV is the total sales from selling all the units) and undertaking a sensitivity for each scheme allowing for increases in contruction costs via CPI inflations.

Exit Strategy

We ensure senior debt and mezzanine facilities have sufficient sales periods built in on top of the construction periods. Alternative exits are forecasted. Such as opting to rent all the dwellings within a scheme, redeeming senior and mezzanine facilities via buy to let mortgages.

The plan B must be forecast to work as well as plan A for acceptance by us before presentation to investors on our equity platform.

Developer's Credentials

The developer’s CV and their historically completed schemes are assessed to ensure track records match those of the proposed scheme. The developer’s assets and liabilities (A & L) are assessed to ensure each developer is able to meet their personal guarantee amount (Generally, 20% of senior and mezzanine debt facilities).

We have step in rights via the shareholders agreement to take over the project should the developer not perform. Under these circumstances, the developer’s shares are transferred to us.

Outcome

Undertaking such rigorous due diligence usually averages 1% of the proposals being put forward for our joint venture equity investors.

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Properties

SPV1003

Sheringham, Norfolk, NR26

SPV1003

100% Funded

£5,315,794

of £5,315,794

100%

Funded

Exit Strategy

Sell For Profit

Investment Term

18 months

Funding Complete

SPV1004

Ipswich, Suffolk, IP3

SPV1004

100% Funded

£7,327,378

of £7,327,378

100%

Funded

Exit Strategy

Sell For Profit

Investment Term

24 months

Funding Complete

SPV1009

Stroud Green, London, N4

SPV1009

100% Funded

£3,434,918

of £3,434,918

100%

Funded

Exit Strategy

Sell For Profit

Investment Term

15 months

Funding Complete

SPV1012

Norwich, Norfolk, NR3

SPV1012

100% Funded

£9,302,623

of £9,302,623

100%

Funded

Exit Strategy

Sell For Profit

Investment Term

24 months

Funding Complete

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.

Capital at risk. Read more.