We operate as a principal GP platform for a limited number of long-term capital partners, typically in single-asset or programmatic joint ventures where AR Developments retains delivery control and economic alignment.
The platform is being built to deploy capital across repeatable residential and mixed-use strategies in London, with a focus on institutional delivery standards, disciplined leverage, and capital preservation. Scale will be pursued selectively, prioritising governance integrity and delivery capacity over rapid asset accumulation.”
The kind of risk we deliberately take — and what risks we refuse?
1. Capital Deployment Focus
- Asset type: we target residential / mixed-use BTR
- Geography: within London zone 1-4
- Ticket size range: £20-30m
- Leverage ceilings: 60-65%
2. Return Framework
Our platform does not chase just the typical 18-22% IRR: returns are generated through basis creation, delivery control, and downside protection rather than leverage expansion or speculative pricing.
3.Capital Protection & Downside Management
Our investment structures are designed first to preserve capital and second to generate returns. Downside protection is embedded through the following principles:
- Controlled Leverage & Debt StructuringLeverage is capped at conservative levels (typically 60–65% LTC) and structured to avoid refinance dependency. Debt assumptions are stress-tested against rate increases, timing delays, and exit valuation compression.
- Stage-Gated Capital DeploymentCapital is released only upon achieving defined technical, commercial, and contractual milestones, limiting exposure to early-stage execution risk and allowing assumptions to be revalidated before further capital is committed.
- Execution-Led Risk AbsorptionConstruction risk is mitigated through delivery control, disciplined procurement, and contract structures that prioritise cost certainty, change control, and contractor balance-sheet resilience rather than headline pricing.
- Liquidity & Contingency DisciplineAll projects are underwritten with contingency and liquidity buffers calibrated to downside scenarios, including programme slippage and slower stabilisation, ensuring the ability to absorb shocks without impairing invested capital.
Indicative Capital & Risk Allocation Structure
Each investment is structured to ensure that capital exposure, decision authority, and economic participation remain aligned throughout the lifecycle of the asset.
Equity Structure
LP capital is deployed into a single-asset or programmatic joint venture at asset level. The GP retains control over development execution and delivery decisions, subject to agreed governance and investment committee approvals.
Capital Priority
LP invested capital ranks senior to GP economics. GP participation in performance upside is subordinated to the full return of LP capital and the achievement of agreed return thresholds.
Fee & Economics Subordination
A portion of GP management fees is deferred and structurally subordinated. Performance participation is only crystallised once capital preservation and hurdle conditions are satisfied.
Risk Control & Release Mechanisms
Capital is drawn in stages, aligned to pre-agreed technical and commercial milestones. Material deviations from underwritten assumptions trigger review, re-approval, or pause mechanisms before further capital is released.
Exit & Capital Return
Exit timing and method are determined through governance processes, prioritising capital recovery and liquidity over opportunistic timing or IRR maximisation.
4. Risk Parameters
These are what we do Not do, in explicit terms!
- No speculative planning risk,
- No short-term flip dependence
- No aggressive exit yield assumptions
- No contractor-concentration risk
5. Execution Model
Who does what, and how risk is controlled in our company:
- In-house development management
- Fixed reporting cadence
- External QS / PM / legal
- Stage-gate capital release
6. Alignment
Alignment is achieved primarily through structural and economic subordination rather than initial cash co-investment.
The GP’s management fees are partially deferred and subordinate to the return of LP invested capital. Performance participation is only crystallised once capital preservation thresholds and agreed return hurdles are met.
The platform’s primary economic exposure is therefore tied to long-term performance, repeatability, and capital protection, rather than short-term fee extraction or leverage-driven outcomes.
Where appropriate, the platform may also commit balance sheet capital alongside LP equity, scaled relative to risk profile and capital intensity
