- Established in 2005, The Spell Fund provides equity finance to property developers. As equity funders, we deliver a more committed approach to a development with a clear vested interest in the final success of the project.
- Our understanding of local property markets and potential purchasers combined with in-depth experience of the development process ensures we ‘add value’ to every project we are involved with.
- Since its inception, The Spell Fund has successfully supported over 25 projects with a combined Gross Development Value (GDV) of over £125M. These range from small developments of domestic homes through to apartments, hotels and student accommodation.
- A typical project term will be 18 months to 2 years and we will look to invest up to £1.5m per project, depending on locality and market potential. When considering how to structure and finance projects, we will tailor our solution to the individual project and developer's requirements often working through a Joint Venture agreement. In some cases, we are willing to consider planning risk as part of the overall project.
- Working with a growing network of developers, we can provide much needed liquidity allowing them to maximise opportunities they would otherwise be unable to consider.
- We are always happy to talk to new developers who are looking for a more flexible and collaborative approach to property development.
We have a simple 4 step method for evaluating new investment opportunities
We undertake a careful and rigorous financial analysis of a proposed development from start to sale to ensure everyone involved understands the expected returns and any potential risks that need to be factored in to the plans.
Given our experience of the property development process we seek a clear understanding of the project delivery milestones, timeline and resources needed to complete and market the scheme.
We research the geographical location of each scheme to gain an insight into the local market and potential purchasers that can be targeted for the completed properties.
We conduct thorough due diligence on the developer we will be working with to ensure that they are financially stable and have a strong track record in developing similar schemes.