JaeVee, the ‘disruptive’ PropTech business which launched in February 2018, is aiming to revolutionise how people develop, invest and learn about property.
A joint venture equity platform providing experienced property developers with 100% equity and investors with opportunities to ‘invest in the excellent track records of those developers’, the platform allows experienced property developers to submit profitable Build to Sell and Build to Rent schemes.
This is designed to create capital return and income opportunities for equity investors.
The firm, co-founded by Ben James Smith and Daniel Smith, has also developed an online learning platform enabling people wanting to learn more about property development to do so via its website, with a first of its kind pay-as-you-go offering.
The model claims to be unique as it not only offers 100% equity, but also offers safeguards, control and accessibility to all parties. When a newly formed SPV is created, everyone involved - the property developer, investors and JaeVee - enter into a shareholders agreement with all benefiting from shareholders rights.
In addition, a further agreement is signed between the property developer and the SPV which outlines what the developer is required to do. If the developer doesn’t deliver, JaeVee steps in and takes over the development, protecting investors’ equity.
“When we founded JaeVee we did so off the back of completing many property developments that were achieved by joint venturing with investor partners,” Ben James Smith, co-founder and chief executive at JaeVee, said.
“It was about taking the success of that concept and building it into a platform that other experienced property developers could take advantage of, whilst creating a diverse set of investment opportunities for equity investors.”
He added that, whilst JaeVee raises the equity via its property crowdfunding platform, it also acts as the ‘Employers Agent’ within the terms of the construction contract. This enables it to keep its finger on the pulse to ensure developments are kept on schedule and to the programme.
“We have developed a system that provides the three things people want - protection, control and accessibility,” Smith added. “Equity investors have access to the platform 24/7 and see all the documents related to the project they’ve invested in. We’re particularly proud of the monthly construction updates from the developers, which allow investors to see progress photos, drawdowns and live programmes.”
“We’ve already successfully completed purchase on two joint ventures, one in Ipswich and another in Sheringham, with many more coming. We believe our model is going to help experienced property developers build more homes and simultaneously give equity investors more UK property investment opportunities.”