Invest with us
We are always looking for the right equity partners that understand risk, but want better returns than other traditional asset classes such as equities, bonds and cash. DEM can provide prospective investors with a full project appraisal which includes analysing the equity required, build costs, professional fees, financing costs with senior debt partners, potential planning gains, sales, the risks associated with each project and sensitivity analysis of returns.
Each project produces high-margins which are shared between the delivery partners and equity investors.
We encourage potential equity investors to contact us if they would like to learn more.
Do you have equity to invest?
Joint Venture Partners
The Benefits of Joint Venturing with DEM Group
For a typical property owner, undertaking a property development within a joint venture partnership, will deliver increased profitability relative to disposing the land or property directly to the market undeveloped.
As part of the joint venture, the property owner will have an agreement with a developer, where they contribute the land, and the developer contributes expertise and capital to take the project forward.
A joint venture partnership may be structured either to take a property through the planning process and create an exit scenario thereafter or is followed into the construction and sales process to maximise mutual benefit.
A Typical JV Structure
Step One
Based on the property owners’ requirements, a base land payment is agreed as well as how payments will be sequenced.
Step Two
Based on the developer’s input & risk parameters, a profit share split is agreed.
Step Three
The property is then taken through the planning process and planning consent is secured. Based on costs and the value created through planning, the property is then valued by an independent valuer to reach a fair market value.
Step Four
The project is then either disposed of if this is a mutually agreed exit or is taken through the full construction process, through to the sales process, whereby the developer assumes all development risks.
Step Five
Result – the landowner obtains an enhanced value for and fair share of profit without taking development risk.
Post sales, the land owner receives the enhanced land value payment plus agreed profit share, enhancing their returns relative to selling an undeveloped asset.
