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Why get into a real estate Joint Venture?

A Joint Venture with a reputed builder or property developer enables landowners to gain maximum values and ~2X returns for their property based on the location. In addition, they also have access to the expertise and experience that the Developer might have in construction, compliances, marketing, branding. In joint venture the Landowner or investor also have the flexibility to structure their deal to suit their capital and built area requirements. This has been the most successful model to develop large commercial, residential and office complexes.

0%

0%

Investment Risk

10%

10%

Stamp Duty Savings

40% to 60%

40% to 60%

Sharing Basis

2X

2X

Value Gain

What to look for when you are entering into a Joint Venture?

JV Ratio

The land sharing ratio is one of the primary factors for the land owners. Get the best joint venture ration in the real estate market that will benefit you.

Payment Terms

Make sure the payment terms are practical, serves you and clearly documented in the joint venture agreement with the realtor.

Transparency

You may not be very familiar with the real estate market and that is understood. Hence evaluate if the realtor is transparent with you in all the stages of engagement.

Expense Sharing

There are many aspects until the project is completed, where expenses need to be shared between the land owner and realtor. Discuss this early on and agree in writing.

Timely completion

A Joint venture development project means there are multiple dependencies. Experienced Property developers anticipate these factors into their plans for timely completion.

Quality of Construction

Timely completion doesn’t have to compromise quality of construction. Discuss the agreed standards and get in writing to avoid any disputes at a later point in time.

What to look for when you are entering into a Joint Venture?

  • Analysing The Development Potential
  • Valuation Of the Property
  • Due Diligence on Developer Capabilities and Expertise
  • Deal Structuring
  • Design Advisory
  • Property Construction
  • Scrutiny Of Joint Venture Agreements
  • Registration Support for POA and JV Agreements
  • Monitoring Of Construction Progress
  • Compliance And Handover

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