Alex Harrington-Griffin, Developers Boardroom

Group of developers with £30m of funds aims to help exit distressed peers



A consortium of 12 residential property developers have come together to help offer exits to their peers affected by the coronavirus outbreak.

With almost £30m in funds collectively, The Developers Investment Group — born out of support network Developers Boardroom, which launched in 2017 — plans to help other property professionals exit existing commitments which have been impacted by the pandemic, by buying property and sites from developers.

In March and April, the sector has seen construction sites close across the country, with a handful now reopening in a phased way, while adhering to social distancing guidelines. 

The group, which described the offering as “quick exit solutions for developers, by developers” will be able to deploy funds on assets of between £250,000 and £5m of purchase price, located in the South East, South West or Midlands.

Operating unlike a traditional formalised fund, the group will only invest as individuals.

“We know that many developers are heavily committed in planning applications or near-complete sites, and that the current market and lockdown will be adding severe pressure to these commitments,” explained Alex Harrington-Griffin, founder of Developers Boardroom (pictured above).

“I think we have yet to see the true reaction of lenders and their attitude toward LTV breaches or market drops.

“If assets, developments or securities are going to be sold off quickly, I’d prefer to know a group such as ours — made up of established people with good business ethics are there to help them move on — with creative and fair solutions that recognise the stress involved.

“There is only one thing absolutely certain as a result of the pandemic, is that many businesses will suffer and go under, and that the property market will need to be creative to get out of difficult situations, and we want to be the professional solution available to our peers.”

The group’s focus is on sites with or without planning permission, commercial, industrial and land assets, and completed residential houses or apartments.

It has also arranged to receive guidance from a range of confirmed industry experts and investors, with professional guidance via a partnership with platform TrustedLand, and will use proptech tools, such as Realyse and Aprao, to help with decision making.

 


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