Arranging Joint venture partner for Real Estate

Marketing Strategy to Execution -?

Sales and follow-up Commission -?

An Idea about Joint Venture

When two or more people/companies/entities come together to execute or initiate a real estate project, it is called a joint venture. Joint ventures are done in order to get the access of a skill or resource from another person who possesses them and vice versa. For Example- it is basically practiced to get easy access to finance, assets like machinery, land etc, and knowledge 

Benefits of a Joint Venture

  • Increased Capital Base
  • Development Expertise
  • Access to new marketing channels
  • Shared risks and gains

Procedures and steps involved

  • Project Appraisal 
  • Project Proposal
  • Legal Due Diligence
  • The signing of Agreements- The following are some of the common clauses found in a JVA:
  1. The capital obligations of each party,
  2. The partnership management structure,
  3. The rights and responsibilities of each party,
  4. Exit rights and transfer rights with respect to the sale or transfer of membership interests in the JV,
  5. The downside protection for the land value contributed by the landowner, and
  6. The profit-sharing mechanism.
  • Project commencement 
  • Project Completion

Required Documents

Nature of JV Entity

Documentation

Incorporated JV entity

Company

■JVA / shareholders’ agreement (“JVA”/“SHA”); and 

■MoA and AoA of the JV entity; and

■Other agreements such as trademark licenses and technology transfers.

 

LLP

■Limited Liability Partnership Agreement

■Other agreements such as trademark licenses and technology transfers.

Unincorporated JV entity

Partnership

■Partnership Agreement

■Other agreements such as trademark licenses and technology transfers

 

Cooperation/Strategic Alliance/Consortium

■Cooperation Agreement;

■Other agreements such as trademark licenses and technology transfers.

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