Provisio has supported the establishment of a new development and construction business. The principles, who have a combined 50 years of construction industry experience, had developed a low cost affordable homes model, addressing the needs of local authorities, housing associations and the build-to-rent (PRS) sector, with the aim of establishing an off-site manufacturing facility for energy efficient homes.
We funded a pilot phase of 30 houses, which proved to be exceptional value for money and were sold ‘off-plan’. The venture now has a pipeline of up to 400 plots. The manufacturing facility and showroom are now operational.
Each phase of development was held in a single purpose vehicle (SPV) Limited Liability Partnership controlled by Provisio with the developer creating their equity by meeting preliminary soft costs to create value through the planning consent process.
Provisio also formed a finance company to provide Home Deposit Loans which effectively resulted in virtually 100% finance being achievable for first time buyers. The cash flow cost of ownership is considerably less than the mid-market rental cost of an equivalent property.
We work very closely with each developer client and take a ‘partnership’ approach participating in regular meetings on-site, managing the administration and finances of the SPV’s and adjusting expectations when the project plan objectives are not met, which can and does happen.
Provisio has advanced £4.70 million of development loans through the phases of construction.