Investment finance group European Risk Capital (ERC) has announced that its development co-equity transaction pipeline in the UK has exceeded £100 mln (€118 mln).
Developed under the EquStream brand, the project pipeline comprises joint venture co-equity and preferred equity placements, mainly in the build-to-sell and residential conversion sectors.
With individual equity values of £5-15 mln (€6-18 mln), the developments are located in major metropolitan areas, including central London, and include short-term hospitality and student accommodation assets.
ERC managing partner, Tony Gioulis, said: 'There has been a significant response from the Mid-Market & SME developer community since EquStream’s recent launch.
'This is primarily the result of our capacity to provide our developer clients with alternative, scalable growth funding in conjunction with access to long term institutional equity partnerships and enhanced returns on their own capital base.'
The aggregate gross development value of the pipeline is estimated at over £500 mln.
Launched in October 2021, EquStream is targeted at UK mid-market and & SME property developers seeking access to institutional and diversified equity capital.
Developers are also provided with a one-stop funding solution, with external financing covering up to 98% of the cost.
