Traditionally, large-scale build projects relied solely on banks and institutional investors for funding. However, the Internet has democratised this market, allowing private investors to participate.
Now funding for the project will involve bank loans/institutional investment, developer’s equity and private investor funds. Investor funds are invested for a fixed period and achieve a fixed return.
We offer access to two types of investment products under the development finance umbrella – fixed income and capital growth. While your investment will always be made into property development projects, this choice of two routes depends on the style you wish to invest in and how you wish to receive your returns as well as your short- and long-term goals.
The first option is best for those who wish to receive a regular income from their investment. Funds are invested across a portfolio of sites at different stages of development with fixed rates of return. Investment terms are typically 1-5 years with a minimum investment of £20,000.
The second option suits investors who want long term growth. You can invest across a portfolio or into a specific project. Returns are provided by way of a fixed return on capital, as well as a share of the profits upon completion of the development. Investment terms are typically 1-5 years with a minimum investment of £20,000.
Every project that our investment consultants present to clients has been carefully chosen and expertly analysed for the highest quality standards and competitive, realistic returns. Funding for each development site comes from a combination of commercial (bank) loans, developers’ equity, and individual investments. Otherwise known as mezzanine funding, these individual investments are commonly used in the housebuilding industry to fund larger projects.
A range of commercial considerations such as anticipated projection duration and development location ascertain whether projects are placed in the fixed-income portfolio or capital growth bracket for investments. Other factors such as funding elements and profit margins ensure optimum security and full transparency for all investors.
This quick and simple step allows every client to register with us as a high-net-worth or sophisticated investor. Our straightforward website registration process ensures that your qualifications and requirements as an investor are compatible with our services. Once you have signed up, you’ll be eligible for exclusive access to all the information on our investment opportunities.
Sit down with one of our expert investment consultants (via Zoom or in person) for an in-depth analysis of your needs, requirements, and goals, both in the short- and long-term. This is a great opportunity to ask any questions you might have and for us to explain how Devete works in more detail.
Our team comes together to assess the best investment solutions for you from our current product portfolio and compile a list of recommendations based on your unique requirements and goals.
We meet with you to share our suggestions and select your preferred investment options.
We implement your chosen investment plan. Your designated investment consultant will then keep you updated on its performance and any relevant market activity or opportunities in line with your evolving needs and to complement your existing portfolio.
‘Mezzanine’ financing, positioned between senior debt (typically bank loans) and equity, serves to balance risk and reward for lenders. While senior debt, with its priority claim on the property in default, presents minimal risk and lower returns, equity investments entail higher risk and potential for greater returns. Mezzanine finance occupies the middle ground, bridging the gap between senior debt and developer equity, commonly utilized in the housebuilding sector. It proves instrumental in funding sizable projects where traditional bank loans and available equity fall short of covering development costs. This facilitates expansion of development endeavours for housebuilders we work with, leading to increased housing construction.
“funding needs may differ between projects, but our strategy remains uniform, focusing on maximizing your investment. Typically, the developer’s we work with fund via a model which consists of conventional bank loans, mezzanine financing, and their own equity. For instance, in a project with a £10m cost and a £12m Gross Development Value (GDV), the developer stands to gain a £2m profit, representing 20% of the cost, aligning with prevailing industry norms”
Devete Financials offers a diverse array of opportunities tailored to meet the specific needs of investors. Whether you’re seeking long-term growth, stable income streams, or portfolio diversification, we have options to match objectives.
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This document is exempt from the general restriction in section 21 of the Financial Services and Markets Act 2000 on the communication of invitations or inducements to engage in investment activity on the ground that it is made to ‘investment professionals’ within the meaning of Article 19 of the Financial Services and Markets Act (Financial Promotion) Order 2005 (FinProm); persons believed on reasonable grounds to be ‘certified high net worth individuals’ within the meaning of Article 48 FinProm; persons who are ‘certified sophisticated investors’ within the meaning of Article 50 FinProm; and persons who are ‘self-certified sophisticated investors’ within the meaning of Article 50A FinProm. The attention of prospective Investors is drawn to the “RISK FACTORS” page of this website.
