Borrow - Products - Equity

Fund up to 97% of total costs

Shojin can provide a contribution towards the shortfall after senior funding, significantly reducing your equity requirement and allow you to take on more, or larger projects, maximising your returns in the process.

What is Equity?

Minimal contribution, maximum returns

Our equity product sits between your capital and senior debt, drastically increasing the funding available when acquiring an asset, developing a site or stabilising the income of a property.

How does Equity work?

Shared risk, shared return.

We will contribute up to 97% of the total project costs, excluding financing, in return for a fixed return and/or profit share.

Our equity product is often drawn in full on day one, contributing towards site acquisition. They can be structured with ongoing returns or a bullet payment made upon maturity.

We understand that there are numerous ways to structure a transaction and will work with you to deliver an outcome that works for all parties.

Apply for funding

Our team of experts will review your proposal and present it to our credit committee. If it meets our funding criteria, we will submit an indicative offer letter. Upon acceptance and payment of the commitment fee, we will undertake due diligence, instruct a valuer and project monitoring surveyor as well as engage with solicitors.

Draw down

Upon receipt of all the required reports and completing all internal checks, legal documents will be signed and funds released within 5 business days.

Repayment

Once the scheme concludes, the loan will be repaid through an agreed exit strategy which can include unit sales or refinancing.

FAQs

If you would like to find out more about our flexible funding solutions, please get in touch with a member of the team.

What is the minimum/maximum ticket size?

We provide between £1,500,000 - £6,000,000 per transaction.

What are your equity product parameters?

We fund up to 97% LTC or 80% LTGDV (whichever comes first) so long as the amount does not exceed 80% of the total shortfall after senior debt.

Optional CTA

Do you take any security?

As standard, we require a second legal charge, debenture over the borrowing entity and personal guarantee. Additional security may be required on a case by case basis, as we prefer to mitigate risk as opposed to maximise returns.

What type of opportunities do you fund?

Although we specialise in development finance, we fund an array of opportunities, including acquisition, refurbishment, ground up development, income stabilisation and releasing equity from an existing asset/portfolio. We mainly fund residential-led use classes that are located in major towns and cities across the UK.

What are your typical terms?

Our typical terms last between 6 - 24 months.

"SMEs play a critical role in helping alleviate the significant demand-supply imbalance that has led to a housing crisis within the UK. Shojin partner with developers by providing the most vital piece of the funding stack so that they can increase supply of housing whilst delivering exceptional outcomes for all stakeholders involved.

We are actively lending and have continued to support our partners despite recent macro-economic uncertainty caused by Brexit, Covid and higher interest rates, as the housing shortage shows no signs of slowing and businesses must continue operating.”

Nadav Albin

Head of Lending, Shojin