There are several types that we can assist you with:
A- 50:50 JOINT VENTURE
A joint venture that can be formed with a landowner who wants to have his plot developed by the investor and share profit equally. The current market value of the land is evaluated by a third party or by lending entity/bank(s) in Pakistan. A Special Purpose Vehicle (SPV) is joined by both the partners and the land will be transferred to the SPV.
The investor will give the visibility of the funds along with a commitment to invest in the project until its completion. The investor(s) will first invest equally in the cost of the land. After that, the investment towards completing the project is shared equally. The profit is shared after payment of the construction costs, land, professional fees, and statuary duties. The contractor of the project can be divided based on the spirit of the competitive tendering.
B- JOINT VENTURE BASED ON STOCK BASIS
Under this model, the landowner comes in with his equity in terms of the value of the land and would not put in any further funds towards the projects’ development. The current market value of the land is evaluated by a third party or by lending entity/bank(s) in Pakistan.
A Special Purpose Vehicle is formed by both partners and the land may be transferred to the SPV. Further, funding is done by investors apart from their own investment, it will also get investment, i.e through getting development finance from local Bank(s), private equity investors and marketing/sale of project on with instalment payment plans from start till completion/handing of project to end buyer. The profit will be shared on a pro rata basis, based upon the ratio of investment in developing the plan and the cost of the land by assigning completed stock; identified at the beginning of the project.
C- JOINT VENTURE BASED ON PROJECT MANAGEMENT
The investor will hold 80-85% of the profit shares. As being the JV partner we will be entitled to 5% of profit share. 15% commission of sale price of units sold will be fixed for the marketing firm, this can be negotiated but this is the current market practice of very professional marketing firms here in Pakistan. Marketing firm inclusion is must as they give immediate boost to sales and provide revenue circulation easing the investment burden on the investor.
Our Services and Way Forward:
As being the JV partner, we will be carrying out all activities from Planning, Designing, Approvals, Construction, Post construction Services, Building Management, Maintenance, Sales legality. Based on our MOUs, we will sign a detailed agreement regarding the construction of these projects. In order to start this project necessary approvals are required from the Government. We will ensure that these approvals are taken so that projects can be started