Development Equity in Lambeth
Access equity partners and joint venture funding for your Lambeth development project. Fund up to 100% of project costs by combining equity investment with senior development finance.
Funding
Up to 100%
Profit Share
From 20%
Structure
JV & Equity
Min Scheme
£500K GDV
What is Development Equity?
Development equity is investment capital contributed to a property development project in exchange for a share of the profits. Unlike development finance or bridging loans — which charge interest and must be repaid regardless of the project's success — equity investors participate in both the risk and reward of the development.
For Lambeth developers, equity partnerships can unlock projects that would otherwise be impossible due to equity constraints. By combining an equity partner's capital with senior development finance, it is possible to fund up to 100% of total project costs, with the developer contributing expertise, project management, and deal sourcing rather than cash.
We work with institutional equity providers, family offices, and high-net-worth individuals who are actively seeking opportunities to invest in property development across London, including Lambeth. Our role is to match the right equity partner with the right project and structure a deal that works for both parties.
Equity Structures We Arrange
JV Partnerships
Developer and investor form an SPV. Both parties contribute — developer brings expertise, investor brings capital. Profits shared by agreement.
Profit Share
Investor provides equity in return for a pre-agreed percentage of the development profit. Simple structure with clear alignment of interests.
Preferred Equity
Investor receives a preferred return (hurdle rate) before profits are shared. Provides downside protection for the equity provider.
Co-Invest
Developer and investor both contribute equity alongside senior debt. Smaller profit share for the investor reflects the shared risk.
Equity vs Debt — When to Choose Which
Both equity and debt have their place in development funding. Understanding when each is appropriate is key to structuring the optimal deal.
- You have limited personal capital to invest
- The project has strong margins (25%+ on GDV)
- You want to avoid personal debt exposure
- The scheme is too large for your current equity base
- You want to scale your development business
- You have sufficient equity to contribute 25-35%
- You want to retain all the project profits
- The project has tighter margins (under 20% on GDV)
- You prefer the certainty of fixed interest costs
- You have a strong track record and can access good rates
Development Equity FAQs
Development equity is investment capital provided by a third party — typically an institutional investor, family office, or high-net-worth individual — in exchange for a share of the development's profits. Unlike debt (which charges interest), equity investors participate in the upside of the project. Equity can fund up to 100% of project costs when combined with senior debt, eliminating the developer's need for personal capital.
Equity investors typically seek a profit share of 20-50% depending on the level of equity provided, the project's risk profile, and the developer's track record. A developer contributing their expertise and some equity might share 20-30% of profits. A developer providing no equity and relying entirely on the investor would share 40-50%. We negotiate terms that are fair to both parties and ensure the project remains viable.
In a Joint Venture (JV) arrangement, the equity partner and developer form a special purpose vehicle (SPV) to hold the project. The equity partner contributes the required capital (typically covering the deposit and costs not funded by senior debt), while the developer provides expertise, project management, and often a personal guarantee. Profits are shared according to the agreed ratio upon completion and sale of the development.
Equity is preferable when: you have limited personal capital and need to fund up to 100% of costs, the project margin is strong enough to support profit sharing, you want to avoid personal exposure to second charge debt, or the project is too large or complex for mezzanine lenders. Mezzanine is typically cheaper (interest vs profit share) but carries more personal risk.
Equity investors typically assess: the developer's track record and credibility, a minimum profit margin of 25%+ on GDV, clear and detailed planning permission, a realistic build programme and cost plan, strong demand evidence for the end product, and a competent professional team. Lambeth's strong property fundamentals and regeneration narrative make it an attractive market for equity investors.
Discuss Equity Options for Your Lambeth Development
We connect developers with equity partners who are actively seeking London development opportunities. Let us know about your project and we will advise on the best structure.