COO Jason Tebb reveals how Go Develop’s joint venture partnerships are revolutionising SME housebuilding across the country.
Tell us about the company and what you do…
Go Develop provide 100 per cent full joint venture funding that covers land, build, stamp duty and project costs. That means everything is funded without a penny in from the developer or housebuilder. We know that good developers often have more opportunities than they have funds. That’s where we come in.
Working in partnership, we provide a close, aligned relationship with the assurance that once the project is sold, the developer receives the lion’s share of the profits. Right now, we have over 1,100 homes being built nationwide with our joint venture partners.
How does it work?
As we have no shareholders or external board members, we can make decisions flexibly and fast. A decision is made within 48 hours and a deal can be completed in 30 days, cutting through the red tape and delays developers may be used to.
There is no outlay with us, and no debt servicing, as all costs are rolled up until the end of the project. We create an ‘SPV’ to hold the project until it’s build and sold. Then a contract is made to ensure the developer gains the greatest profit share and controls the build. We attend site progress meetings and our monitoring surveyors will deal with monthly valuations and contractor payments.
Why do developers love to work with you?
Obviously, 100 per cent certain funding is music to any developer’s ears, but our partners tell us they love that we’re the ones burning the midnight oil and doing all the admin, VAT returns, valuations and chasing of solicitors and surveyors saving them a huge amount of time and cost. They get their Sunday evenings back! At Go Develop, there’s a whole team of dedicated property experts from marketing to accounting to draw on if you’re a developer wanting to focus on the actual build.
One of the many things our returning developer clients tell us is that we’re easy to do business with. We are not financers with a tick box mentality, we are experts in property. Our decisions are made by a proactive and helpful team, with a wealth of build and development experience – we’ve done it ourselves and understand the challenges and opportunities our clients are facing. We’ve a superb track record of going the extra mile and stick to what we say.
What are your criteria?
It couldn’t be more simple…
- We focus on new build opportunities, apartments and value family housing where homebuyer demand is at its strongest.
- We work nationwide but tend to prefer outside the M25.
- Our developer partners must have full planning permission in place and some property experience is desired.
- The project is up to 24 months duration with a GDV of £2-£15million.
- There needs to be a margin of 25 per cent on GDV pre-finance.
What should I do if I’ve a project for Go Develop?
The first step is to send us your development appraisal and cash flow for the project, along with the full planning decision notice. We will review and advise, usually within 24 hours, whether the project is suitable. If it is, we will ask you to complete our short application form with supporting information, then we can get the ball rolling and draw up our formal Heads of Terms. On receipt of the signed Heads of Terms, we formally instruct legals, valuations and and professional services.
We don’t wrap our partners up in complex terms and conditions, we keep it simple and are known to be easy to do business with. It’s something we pride ourselves on and our returning partners are testament to that. We love giving references – ask us!
What are the plans ahead?
To build on what we have achieved and to continue to support all our clients and brokers as we expand our business.
The next 12 months will prove to be an exciting time as we introduce a number of support functions to our existing and future partners, from risk and due diligence to marketing and social media.
This time next year, we will be more than a funding solution, we will be a complete land and build services provider, allowing our partners to concentrate on the things they do best, whilst we help with the things they don’t have the time or the expertise to execute on their own. Above all we’ll ensure we continue to deliver beyond expectations.