Greenwich Development Finance
Greenwich Development Finance - development equity
Equity Partnerships & Joint Ventures

Development Equity in Greenwich — Partner for 100% Funding

Access equity partners and joint venture arrangements to fund up to 100% of your Greenwich development project costs. Share profit instead of paying interest, and retain operational control of your scheme.

Find an Equity PartnerEquity vs Debt Explained

Up to

100%

Project Costs Funded

Typical

20-50%

Profit Share

During Build

£0/mo

No Monthly Payments

Typical

4-8 weeks

Arrangement Time

What Is Development Equity?

Development equity is capital invested into a property development project in exchange for a share of the profit, rather than a fixed interest rate. Unlike debt (such as senior development finance or mezzanine loans), equity does not require monthly interest payments, does not have a fixed repayment date, and is not secured by a charge on the property. Instead, the equity provider becomes a partner in the project and shares in both the risk and the reward.

For developers in Greenwich who have identified a strong project but lack the full equity contribution required by lenders, development equity provides a route to get the project funded. Combined with senior debt from a development finance lender, an equity partner can enable you to deliver a project with little or no cash of your own in the deal.

The equity partnership is typically structured through a Special Purpose Vehicle (SPV) — a limited company set up specifically for the project. The SPV owns the development, borrows the senior debt, and distributes profits to the partners according to the agreed profit-share arrangement. This ring-fences the project from both parties' other business activities and provides a clean legal structure.

Greenwich's regeneration programme, strong transport connections, and growing property values make the borough an attractive location for equity investors. Projects in Charlton, Greenwich Town Centre, and Eltham are of particular interest to equity partners who recognise the long-term growth potential of the area and the development opportunities created by the borough's transformation.

Benefits of Equity Partnerships

Fund up to 100% of your project costs (with senior debt)
No monthly interest payments during the build phase
No fixed repayment date — profit paid from actual sales
Share risk with an experienced investment partner
Access expertise, contacts, and operational support
Retain operational control of the development
More flexible than debt during project delays
No personal guarantees in most equity structures

Equity vs Debt — Understanding the Difference

The choice between equity and debt funding has significant implications for your project structure, cash flow, risk profile, and ultimate return. Here is how they compare.

Equity Funding

Profit Share Model

Capital provided in exchange for a share of the development profit. The equity partner shares in both the risk and the reward. No fixed interest, no monthly payments, no security charge required.

Return based on actual profit achieved
No monthly interest payments during the build
No charge on the property required
Flexible — no fixed repayment deadline
Partner shares downside risk
Typical profit share: 20-50%
Can fund up to 100% of equity requirement
Partner may have decision-making rights

Best for: Projects where cash equity is limited, timelines are uncertain, or you want a strategic partner.

Debt Funding

Interest-Based Model

Capital lent at a fixed interest rate, secured against the development property. The lender earns a fixed return regardless of how profitable the project is. Interest accrues whether the project succeeds or fails.

Fixed interest rate regardless of profit
Interest accrues from day one (typically rolled up)
Secured by charge on the property
Fixed term with penalties for overrun
Lender does not share in losses (secured position)
Typical rate: 0.65-1.75% per month
Funds up to 70-90% LTC (with mezzanine)
Lender has no decision-making role

Best for: Projects with strong margins, clear timelines, and sufficient equity for the required deposit.

Profit Share Structures

The profit share arrangement is the most important commercial term in any equity partnership. Here are the common structures used in Greenwich development projects.

Straight Split

50/50

The simplest structure. All net profit is split equally between the developer and equity partner. Commonly used when the equity partner is providing the majority of the capital and the developer is contributing primarily expertise and management. Straightforward and easy to administer.

Best for: 100% equity funding, passive investors

Preferred Return + Split

8-12% pref + split

The equity partner receives a preferred return on their capital (typically 8-12% per annum) before any profit split takes place. Remaining profit is then split, often 60/40 or 70/30 in favour of the developer. This protects the equity partner's minimum return while allowing the developer to benefit from strong project performance.

Best for: Institutional equity, balanced risk

Tiered Profit Share

20-50% tiered

The profit share percentage varies based on the level of profit achieved. For example, the equity partner may receive 40% of profit up to 20% ROC, 30% of profit between 20-30% ROC, and 20% of profit above 30% ROC. This structure rewards the developer for outperformance and gives the equity partner greater participation in base-case profits.

Best for: Experienced developers, strong projects

Joint Venture Arrangements

A joint venture (JV) is the most common legal structure for development equity partnerships. It provides a clear framework for the relationship between you and your equity partner, defining roles, responsibilities, financial contributions, decision-making processes, and profit distribution.

For Greenwich developments, a well-structured JV protects both parties and provides lenders with confidence that the project is professionally managed. Senior lenders are accustomed to working with JV structures and most have template requirements for JV agreements that must be satisfied before they will lend.

SPV Structure

A Special Purpose Vehicle (limited company) is set up specifically for the project. Both parties are shareholders with ownership percentages reflecting their agreed interests. The SPV holds the property, borrows the debt, and distributes profits.

JV Agreement

A comprehensive legal agreement covering capital contributions, decision-making authority, project management responsibilities, profit distribution, deadlock resolution, default provisions, and exit mechanisms.

Decision Framework

Typically, day-to-day operational decisions are made by the developer, while significant decisions (budget changes above a threshold, design changes, sale pricing) require joint approval. This balance gives the developer control while protecting the equity partner's investment.

Exit Provisions

The JV agreement defines how and when the partnership ends, including the waterfall for distributing sale proceeds, provisions for buying out a partner, and what happens if the project runs into difficulty.

Typical JV Funding Structure

Total Project Cost

Land + build + fees + finance

£2,500,000

Senior Debt (65% LTC)

First charge development finance

£1,625,000

Equity Partner Contribution

35% equity — no interest charged

£875,000

Your Cash Contribution

You contribute expertise and management

£0

GDV (Gross Development Value)

Expected value of completed units

£3,750,000

Projected Gross Profit

GDV minus total costs

£1,250,000

Senior Debt Costs

Interest + fees over 14 months

-£142,000

Net Profit to Split

After all finance costs

£1,108,000

Profit Distribution (60/40 split)

Developer (You)

£664,800

60% of net profit

Equity Partner

£443,200

40% of net profit

* Illustrative example only. Actual terms depend on individual project and negotiation.

When Is Equity the Right Choice?

Development equity is not always the right solution. Here are the scenarios where equity partnerships provide the most value for Greenwich developers.

Limited Cash Available

You have found a strong development opportunity in Greenwich but do not have the 25-35% equity deposit required by senior lenders. An equity partner provides the capital you cannot, enabling you to proceed with the project.

Wanting to Scale

You have the skills and experience to run multiple projects simultaneously but your capital is tied up in existing schemes. Equity partnerships allow you to take on additional projects without waiting for capital to be returned from current developments.

Higher Risk Projects

Projects with planning risk, complex construction, or uncertain timelines may be too risky for mezzanine lenders. Equity partners are often more willing to accept these risks because their return is linked to profit rather than fixed interest payments.

Seeking Expertise

Some equity partners bring more than just capital. They may offer development expertise, construction contacts, planning knowledge, or sales and marketing capability that can enhance the project's success and your learning as a developer.

Tight Margins

When project margins are thin, the cost of interest on mezzanine or stretched senior debt can make the scheme unviable. Equity has no interest cost during the build — the profit share is only paid from actual profits, preserving the project's viability.

First-Time Developers

If you are a first-time developer, an experienced equity partner can provide both the capital and the credibility that senior lenders want to see. Their track record can strengthen your application and help you access better senior debt terms.

Types of Equity Partners

We connect Greenwich developers with a range of equity providers, each with different investment criteria, ticket sizes, and levels of involvement.

Private Investors & HNW Individuals

High-net-worth individuals looking for hands-off property investment returns. They typically invest £50,000 to £500,000 per project and are attracted by the tangible nature of property development. Decision-making is fast and personal relationships are valued.

Investment

£50K - £500K

Timeline

1-3 weeks

Involvement

Passive

Family Offices

Professional investment managers overseeing the wealth of ultra-high-net-worth families. They deploy larger amounts and often take a portfolio approach, investing in multiple developments. Due diligence is thorough but they offer significant capital for the right opportunities.

Investment

£500K - £5M+

Timeline

3-6 weeks

Involvement

Semi-active

Development Equity Funds

Institutional capital pools specifically mandated to invest in property development equity. They have formal investment committees, detailed due diligence processes, and standardised JV documentation. Ideal for larger schemes requiring significant equity.

Investment

£250K - £10M+

Timeline

4-8 weeks

Involvement

Active oversight

Developer-to-Developer JVs

Partnerships between two developers where one brings the opportunity and the other brings capital or complementary skills. This can be an effective structure when both parties have something unique to contribute to the project.

Investment

Varies

Timeline

2-4 weeks

Involvement

Active partnership

Common Questions

Development Equity FAQs

Answers to common questions about equity partnerships and JV arrangements for Greenwich property developments.

Development equity is capital provided by an investor or partner in exchange for a share of the development profit, rather than charging interest like a lender. The fundamental difference between equity and debt is the nature of the return. Debt (such as senior development finance or mezzanine) charges a fixed interest rate regardless of how profitable the project is. Equity participates in the upside — if the project makes a higher profit than expected, the equity partner earns more. Conversely, if the project underperforms, the equity partner bears losses before any debt lenders. Equity providers do not require monthly interest payments, no charge is registered against the property (unless the equity is structured as a loan), and the equity provider typically has a say in key project decisions through the JV agreement.
Equity partner profit shares for Greenwich development projects typically range from 20% to 50% of the net development profit, depending on how much of the total project costs the equity covers and the level of involvement from each party. If the equity partner is providing 100% of the required equity (with the balance funded by senior debt), a profit share of 30% to 50% is typical. If they are providing partial equity alongside your own contribution, 20% to 35% is more common. The profit share is also influenced by who is doing the work — if you are managing the entire development and the equity partner is purely passive, you can negotiate a lower profit share. If the equity partner is also providing expertise, contacts, or operational support, they will expect a higher share. All terms are negotiable and should be documented in a comprehensive joint venture agreement.
A joint venture for property development is a formal partnership between two or more parties who agree to combine resources to deliver a project. Typically, one party brings the development opportunity and project management expertise, while the other provides the capital (equity). The JV is usually structured through a Special Purpose Vehicle (SPV), which is a limited company set up specifically for the project. The SPV borrows the senior debt, owns the development site, contracts with builders, and ultimately sells or retains the completed units. The JV agreement between the parties sets out each party's rights and obligations, including capital contributions, decision-making processes, profit-sharing arrangements, dispute resolution, and exit provisions. It is essential that the JV agreement is drafted by solicitors experienced in development JVs to protect all parties.
There are several types of equity partners available for development projects in Greenwich. Private individuals or high-net-worth investors often invest in property development JVs as an alternative to traditional investments, typically investing £50,000 to £500,000 per project. Family offices manage wealth for ultra-high-net-worth families and may deploy larger amounts of £500,000 to £5 million or more per deal. Specialist development equity funds are institutional investors that deploy equity across multiple development projects, typically investing £250,000 to £10 million per scheme. Developer-to-developer JVs occur when two developers partner, with one bringing the site and the other bringing capital or complementary skills. Corporate investors include property companies and REITs that may provide equity in exchange for profit share or a retained interest in the completed development. We have relationships across all of these investor types and can match you with the most suitable equity partner for your specific project.
Equity can be the better choice over mezzanine finance in several scenarios. When you have very limited cash equity available and need close to 100% of project costs funded, equity may be the only option as mezzanine typically only takes combined leverage to 85-90% LTC. When the project has a longer timeline or uncertain exit, equity is more flexible because there is no fixed repayment date or penalty interest for delays. When project margins are tight, the absence of interest payments during the build phase can make the project more viable, as the equity return is only paid from actual profits rather than accruing regardless. When you want an experienced partner, some equity providers bring development expertise, industry contacts, and operational support alongside their capital. When the project is complex or higher risk, such as speculative builds without pre-sales or projects requiring significant planning work, equity partners may be more willing than mezzanine lenders to accept this risk level.
The timeline for arranging development equity varies depending on the type of equity partner and the complexity of the arrangement. For private investors or HNW individuals who we already have a relationship with and who are familiar with the Greenwich market, terms can be agreed within 1-2 weeks and legal documentation completed within 3-4 weeks. For equity funds or institutional investors, the process is typically longer, with initial term sheets in 1-2 weeks, followed by due diligence (including independent valuations and legal review) taking 2-4 weeks, and final legal documentation taking another 2-3 weeks. The total timeline is typically 4-8 weeks from initial introduction to funds being available. To speed up the process, we recommend having your project pack ready in advance, including planning documents, build cost schedules, architect drawings, a detailed appraisal showing projected profit, and information about your professional team.

Related Finance Services

Development equity often works alongside debt products to create the optimal funding structure. Explore our full range of property finance solutions for Greenwich developers.

Development Finance

Senior debt funding that combines with equity to cover up to 100% of project costs. The senior lender provides 55-70% LTC, with equity covering the remainder.

From 0.65% pm

Bridging Finance

Fast short-term funding for site acquisition while your equity partnership and development facility are being arranged. Complete in 5-10 days.

5-10 day completion

Mezzanine Finance

If you prefer debt to equity, mezzanine finance provides second-charge lending at 1.0-1.75% per month, taking combined leverage to 90% LTC while retaining all profit.

Up to 90% LTC

Model Your Development Returns

Use our free profit calculator to model different equity and debt scenarios for your project.

Profit CalculatorDevelopment Calculator

Find an Equity Partner for Your Greenwich Project

Whether you need full equity funding or a partial contribution to reduce your deposit, we can introduce you to suitable equity partners and help structure a JV that works for everyone. Tell us about your project and we will match you with the right investors.

Access to private investors, family offices, and equity funds
JV structuring and documentation support
Combined equity and senior debt arrangement
Experienced in Greenwich development partnerships
Prefer to talk? Call us on 07595 366094

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Development Equity Across Greenwich

We connect developers with equity partners for projects throughout the London Borough of Greenwich.

Greenwich Town CentreSE10BlackheathSE3CharltonSE7WoolwichSE18ElthamSE9KidbrookeSE3PlumsteadSE18Shooters HillSE18