Developments
Creating new homes — ground-up build on land, or major redevelopment of an existing structure — usually delivering multiple units.
Typical ROI
20% profit on GDV
Timeline
12 to 36+ months
Difficulty
High
Key metric
GDV
Strategy overview
- Acquire a site or building with development potential
- Secure or enhance planning permission (the main value driver)
- Build out the scheme
- Sell the units, or refinance and hold
Advantages
- Largest absolute profit potential of the strategies here
- Create significant value through planning gain
- Multiple exit routes — sell all, hold, or a mix
- Control over the end product and specification
Considerations
- Planning risk can stall or sink a scheme
- Capital-intensive and long-dated — market can move mid-cycle
- Build-cost inflation and programme slippage
- CIL, Section 106 and professional fees
- Requires an experienced team and robust contingency
Funding options
Development finance
Staged drawdowns, with senior debt typically around 60 to 70% of GDV.
Built for new buildMezzanine finance
Tops up the capital stack above senior debt.
Bridges the equity gapJV equity / private investment
External capital in exchange for a profit share.
Scale beyond your capitalBridging finance
For the initial site acquisition.
Site acquisitionIdeal property profile
- Land or sites with development potential, ideally with lapsed or existing consent
- Brownfield or under-used plots
- Properties on oversized plots or with large gardens (back-land / plot-splitting)
- Buildings suitable for demolition and rebuild in a strong sales location