Investments
Introducing 'Select Partnerships' by Land Rich
Over 20 Years Experience
Land Rich are connecting developers and high net worth investors to create mutually enhanced financial partnerships.
Finding an attractive deal to invest into as well as securing funding for a development opportunity that’s landed on your desk is a complex task. You must know the right people and present them with the right opportunity at the right time.
With over 20 years of experience in the industry, we’ve been able to confirm time and time again that time is money and it’s what you know as well as who you know that counts, Land Rich can help solve this problem.
Opportunities
Joining Land Rich ‘Select Partnerships’ you get access and opportunities to:
As an investor:
Make your capital work to ensure healthy returns and security, whilst supporting an established developer in project delivery.
As a developer:
Secure cost-effective borrowing whilst improving business cashflow position and growth.
Why 'Select Partnerships'
- Carefully considered ‘match-making’ services for mutual financial gains, between Investor and Developer.
- Strong network over 250 developers across the South West.
- Access to active investors with capital to utilise.
- Network of industry professionals during the life span of the project.
- Direct access to opportunities via land acquisition and disposal services at Land Rich.
- Consultancy services through extensive industry knowledge.
In addition to the introduction services, ‘Select Partnerships’ at Land Rich include an extensive list of due diligence reports for both parties, working with professionals:
- In depth opportunity overview
- Gross development value report
- Build cost report
- Land acquisition cost report
- Gross profit report
- Return on investment report
- JV agreement
- Company shares agreement
- Capital required breakdown
- Capital reserve breakdown
- Equity profit share inc. interest report
- Debt duration demonstration
- Profit Share inc. interest overview
- Loan agreement
- Personal guarantee agreement
- Land Rich management service
Benefits of partnerships in property industry
Development funding benefits to the investor:
- 10% to 50% profit shares excluding finance
- Optional fixed profit returns
- Return on Investments from 15 to 25%
- Optional 1st & 2nd charge against asset
- Optional personal guarantees
- Timescale managed investment
- Utilisation linear over x months
- 5% to 20% interest on utilisation above equity
- Building long term relationships with established developers
- Independent monitoring surveyor and RICS services
- Tax efficiency through SPV and preferential shares
- Optional fixed Costs
- Debenture
Development funding benefits to the developer:
- Cost-effective lending
- Up to 100% equity amount for profit share or alternative offers
- No arrangement or exit fees
- Access to better debt to lending equity ratios
- Access to tier 1 & 2 lenders
- Ability to manage cashflow and secure new opportunities
- Ability to offer competitive land values to secure asset
- JV equity partner = Speed
Investment Approach
Legal Structure – Investor to invest into site-specific SPV, allowing the project to be ring-fenced from the wider business
Delivery – As the delivery partner the developer will be responsible for delivering the scheme’s works or procuring them from a main contractor
Equity – Investors equity may sometimes rank equally with the developer’s and repatriation of investments and profit are shared equally
Development Finance – 3rd party debt can be raised (if preferred) to reduce overall equity requirement and enhance the equity returns
Profit Share – Derived solely through a profit share which is agreed in percentage terms at the outset of the development
Transaction Process
Diligence
The Investor’s diligence process typically includes the following stages:
1. Getting to know the Developer’s business
2. Demonstrating past track record of projects
3. Valuation & QS reports on opportunity
4. Project programme and take-off reports
5. Business credit checks
6. Disclosure of personal and business assets & liabilities, demonstrate Developer can cover a personal guarantee
Investors Legal Documents
1. Investment agreement
2. Shareholder Investment agreements (one for Investor and one for the Developer)
3. Development Management Agreement
4. Legal Document for Second Charge or risk mitigation agreed
Other Legal Documents
Legal documents include the following:
1. Build contract, appointment letters, etc.
2. Certificate on title
Disclaimer
Regulatory Compliance:
The disclaimer acknowledges that the content of the financial promotion has not been approved by an authorized person as required by the Financial Services and Markets Act 2000 (FSMA) in the UK. In many countries, including the UK, financial promotions must be reviewed and approved by authorized individuals or entities to ensure they comply with relevant regulations.
Unregulated Investments:
It states that the investment opportunities being promoted are not regulated. This means they don’t fall under the oversight and protection of regulatory authorities, which could expose investors to higher risks.
Eligibility:
It specifies that these investment opportunities are only open to High Net Worth (HNW) or Sophisticated Investors (SI). High Net Worth individuals typically have a significant amount of assets or income, while Sophisticated Investors are expected to have knowledge and experience in investing.
Risk Warning:
The disclaimer also includes a risk warning, cautioning individuals that relying on this promotion for investment activities carries a significant risk of losing all invested property or assets. This is a legal requirement to ensure that investors are fully aware of the potential downside of the investment.
In summary,
this disclaimer is intended to inform potential investors about the non-regulated nature of the investment opportunities, their eligibility requirements, and the associated risks. It’s an important legal requirement to provide transparency and protect investors by making them aware of the potential risks involved in these investments. It’s crucial for individuals to carefully consider these risks and seek professional financial advice before making any investments in such opportunities.