The primary aim of the fund is to enable developers to acquire sites, refinance sites and to complete housing schemes that are constrained by the lack of equity capital in the market. The focus of the fund will be on starter homes located in urban areas around the country.
Pearl will provide up to 80% of the equity funding requirement for the development with the balance of equity to be provided by the developer. In return for equity investment Pearl will be a partner in the site development and share in the profit of the development.
The acquisition of zoned residential land can be funded by equity from the developer and Pearl. Debt can then be introduced when planning permission has been achieved on the site. Third party debt can be utilised on sites with planning permission. It is desirable that the developer will have engaged with financial institutions to secure indicative terms.
Pearl will rely on the developer to source and negotiate terms for site purchase, conduct appropriate appraisals using internal and professional advisors and prepare a comprehensive business plan for each development.