We partner with proven small housebuilders and developers who are developing
on average between 5-175 units per year and that have a passion and desire to grow.

 

  • Investment Parameters
  • Investment Structure
  • Our Process
  • Why Partner with HGP?

Investment Parameters

  • Equity investment of up to £5m
  • Minimum developer contribution of 10% of total costs
  • Gross development value (“GDV”) of between £4m – £35m
  • Average selling price does not exceed £750k per unit
  • Ideally a minimum of outline planning permission at the point of investment with construction capable of commencing within 12 months

Investment Structure

  • Our strategy is to invest equity on a site specific basis in return for an equitable share of the profit
  • No interest margin or fees are charged
  • Profit share is agreed on a case by case basis but in recognising the contribution of the developer to the project we accept a higher return on investment for the developer over HGP
  • The developer’s contribution can be in the form of capital and/or land
  • HGP’s investment ranks equally with the developer ensuring we share in both the upsides and downsides with the developer receiving repayment of its investment and share of profit at the same time as HGP
  • HGP does not take an active role in the management of the development. The developer retains responsibility for the management of the project with a management fee paid monthly for undertaking this role
  • Debt will be raised in the market to provide an appropriate funding structure and enhance equity return
  • The site will be developed in a new SPV company, allowing your business to remain separate

Our Process

  • We provide initial feedback quickly and have short approval processes with Investment Directors sitting as voting members of the Investment Committee
  • We undertake due diligence on all investments but we make this streamlined and cost effective
  • Typically a two month process: 2-3 weeks to understand your business model and funding requirements and 4-6 weeks to complete the investment

Why Partner with HGP?

  • Partnership: Collaborative approach which shares financial risk proportionally. We invest in the project not the business and the developer’s investment ranks equally with ours
  • Return: Bespoke profit share on a deal by deal basis to enhance the developer’s return on capital invested in the site
  • Growth: Frees up capital for the developer to reinvest in its business. Ability to invest in multiple projects at any one time
  • Value: Ability to recognise current market value of land, including planning gain, at the point of investment
  • Experience: Extensive residential development and equity investment experience in the team with a pool of senior industry advisors available to share experience and network