FAQs

Everything you need to know in one place

Do I have to invest any of my own money?

No, we provide 100% of the funding for every profitable property development and investment you find in the UK via our platform.

How are you able to cover all these costs?

We leverage 65%-75% of the overall hard costs via debt instruments. Therefore means the return on capital invested is based on the remaining equity plus soft costs. The feasibility of each scheme is subject to a satisfactory red book valuation confirming values.

How does PakGreen work?

PakGreen stands for a joint venture which is between you as the property developer, our equity investor line and PakGreen.  We mix senior debt with equity with an SPV being formed to act as the borrower. As the lead property developer, you will provide a personal guarantee for the senior debt (which is capped) being that you’re responsible for delivering the project and ensuring the exit is achieved. The senior debt interest is borne by the SPV as it forms part of the project costs. The net profits, after payment of the senior debt, mezzanine debt (if applicable) and equity invested, will be distributed according to each party’s shareholding. Corporation tax will also be deducted

What’s in it for PakGreen?

PakGreen is a platform, asset and project manager that provides 100% funding to experienced property developers and housebuilders. In exchange, we receive 20% of the profit upon the exit of the project being realised (whether that’s selling or letting). Therefore, if you’re not successful, neither are we.

What’s the benefit of using PakGreen?

We provide 100% funding, experience, administration, sales progression, accounting, TAX returns and employers agent and project management in making sure proposed schemes come to life and are delivered. We find experienced property developers and housebuilders often have more opportunities than funds; this is where PakGreen comes in. To enable those property developers to take advantage of opportunities as they arise.

Am I able to put money in as the property developer?

Yes, you’re able to put in capital towards your project which would result in your shareholding increasing. You’re able to do this via our equity platform once the project is available for funding.

Great, how do I send you my proposal?

Once you’ve signed up to PakGreen, you can create and send us proposals via our platform.

How much does it cost to submit a proposal?

It’s a mere investment on your part of £500 to submit a proposal, which covers our administration fee for reviewing it. It’s also to make sure you’re serious. Upon successful completion of the purchase for your proposed scheme, this fee is refunded to you.

Can you tell me if my proposal is for you without having to pay for one?

If you’d like to know whether your proposal is one for us, without having to pay the cost of a proposal upfront, simply email the feasibility of your scheme or investment, along with the plans. We’ll also provide key headline figures, showing what your share of the profits could look like, to help you make up your mind. Should you then be looking to proceed, you’ll need to submit a proposal to take things to the next stage.

Can I get help submitting a proposal?

Absolutely. Proposal support is on hand and can be requested at any time.

Can I boost my proposal to the front of the review queue?

Yes. Once you’ve created a proposal there’s an option to boost it to the front of the queue, so our investment analysts look at yours first.

What happens if my proposal is rejected?

We’ll notify you, however rather than just rejecting it we tend to offer suggestions on how to get it approved.

Am I able to select my own solicitors?

No – We select the solicitors from our in-house panel. We must have some processes streamlined to avoid mistakes.

What type of properties does PakGreen invest in?

We invest in both residential and non-residential schemes.

Can PakGreen help me with the exit strategy?

Yes. Our in-house project management team can talk you through what you need to do and when you need to do it. It’s important to remember we’re only successful when you are so it’s in both our interests for you to succeed. Whether you’re successfully selling or renting and managing properties, we want to see exit strategies achieved within 6-60 months.

So, what will PakGreen do from start to finish?

We oversee the lifecycle of the development from start to finish to ensure each scheme achieves an exit.

If I don’t want to do the work of the property developer, can I invest equity into a project?

If you’re a high net worth or sophisticated investor, you can invest in the project(s) of your choice for available other projects.

What’s the minimum return on investment you aim to achieve for each project?

We look for a minimum return on capital of 20% on our Sell for Profit product and a 10% yield on our Let & Hold product. Before you submit your proposal, we will provide you with some headline figures for your consideration.

What timescales do you work within for each project?

We generally look for an exit within 6-60 months, which is measured against total capital in, security, risk, inflation, macro/microeconomics and profitability.

How do we assess property opportunities?

Our analyst team have predefined due diligence checklists for each property development scheme presented to us.

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Who pays for the Plot valuation, initial report and searches?

Initially, you will pay for the Land plot valuation, initial report and searches. Should there be any surveys required to enable a positive report on the title, then you will be expected to cover the cost. Once we’ve completed the purchase, you will be reimbursed upon evidencing payments. These costs form part of the SPV cost.

Can PakGreen help me with project management?

Absolutely. We recognise our property developers and housebuilders have different ways of working, therefore, PakGreen can project manage the development.

How long does it take to obtain approval?

When you submit a proposal it’s important to upload all the requested documents for PakGreen to validate your proposal. Our service level agreement in reviewing proposals to make decisions is 5 working days from the validation date. Therefore, you must respond quickly to our validation requests, which will outline any documents needed to validate your proposal.

What happens when my proposal is accepted?

When your proposal is accepted, an agreement in principle (AIP) will be issued. This will outline our heads of terms. To accept, a £500 commitment fee is payable. This is refundable upon completion of the purchase or should PakGreen withdraw our offer. Should you withdraw, the commitment fee is non-refundable.

Once you’ve signed the AIP, it can take up to 6-8 weeks to exchange and complete dependent upon the depth of surveys and legals involved. A valuation is also required. Our company policy is to exchange and complete on the same day. To enable this, both the shareholder and development agreements are issued once you’ve returned the signed AIP and paid the commitment fee.

What happens if there are any delays to a project?

We appreciate there can be delays in the world of property development. Some won’t be in our control, whereas some will. Typical delays can be caused by delays in planning conditions being submitted, detailed designs not being issued, poor procurement schedules, and programs not being kept to.

We help to mitigate those by overseeing the program from start to finish, though as the property developer or housebuilder the onus is on us /you to do the work. Should you feel there is neglect being applied, you serve us with a rectification notice which gives you 4 weeks to rectify the issue.

To provide some guidance, this is why it’s vitally important to select a competent and experienced professional team that’s not made up of one-man bands. We assist you from the outset in making sure the correct professional team has been selected and all for market prices.

What’s the purpose of the shareholders and development agreements?

The shareholder agreement is an agreement entered into between all the shareholders – you as the property developer, PakGreen and the equity investor line. It regulates the relationship between the shareholders, the management of the SPV, ownership of the ordinary shares and the protection of the shareholders. It also governs how the SPV is run.

The development agreement is entered into by you as the Landowner or house builder and the SPV. It is used to set out your obligations. The agreement details the proposed scheme we are going to build, the timeframes they are to be carried out as well as the level of input each party will have during the process.

What is the structure of the joint venture?

A newly formed Pakistan Base limited company is created to act as a Special Purpose Vehicle (SPV) for each venture. As the Landowner and PakGreen as Property Developer, you will hold 40%-50% ordinary shares of the SPV (dependent on the model chosen) with matters requiring consent being 81%. This structure protects all parties. A development agreement is also executed which details what we will be delivering and by when.

There are two directors of the SPV; one is you as the Landowner and one is PakGreen as Property Developer and the other is a director from Investor(s). All funds are controlled by PakGreen. Your reward is 40-50% of the development profits for achieving the exit. Both the profit and any rental or business income generated are distributed according to the shareholding amounts.