Joint Venture
Why get into a real estate Joint Venture?
Embarking on a joint venture with a reputable builder or property developer presents landowners with a unique opportunity to maximize the value of their property and potentially achieve a remarkable ~2X returns, all contingent on its strategic location. This collaboration also grants them invaluable access to the developer’s extensive expertise and experience in construction, compliances, marketing, and branding.
Moreover, landowners and investors enjoy the flexibility to tailor the deal to meet their specific capital and built area requirements. Undeniably, this proven joint venture model has emerged as the most successful approach for the development of expansive commercial, residential, and office complexes. Experience unparalleled growth and profitability by exploring joint ventures with renowned industry leaders.
0%
Investment Risk
10%
Stamp Duty Savings
40% to 60%
Sharing Basis
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