Logo
Pak Green
         Logo
  • Home
  • About Us
  • Services
    • Property Development
    • Marketing & Sales
    • Asset Management
    • Project Management
    • Exhibitions
    • Investment Conferences
    • Legal Services
  • Projects
    • Pakistan Projects
    • Overseas Projects
  • Property JV
  • Property Auctions
  • Provest Members Club
  • News & Media
  • Contact
Login
  • Home
  • About Us
  • Services
    • Property Development
    • Marketing & Sales
    • Asset Management
    • Project Management
    • Exhibitions
    • Investment Conferences
    • Legal Services
  • Projects
    • Pakistan Projects
    • Overseas Projects
  • Property JV
  • Property Auctions
  • Provest Members Club
  • News & Media
  • Contact

    2022 © . All rights reserved.

    Property JV

    Scope of Joint ventures.

    At PakGreen we use our extensive development and construction expertise when working in partnership with local authorities, developers and landowners to unlock sites suitable for commercial developments ranging from 1-100 units, as well lands suitable for Commercial / Mix use projects, i.e. Shopping Malls, Apartments and Residential Towers at Islamabad, Lahore, Pakistan. Other locations can be considered, depending on size of project and plot location. We are recognized for our skills and experience at unlocking complex sites – adding value and significant returns for all parties.

    Joint ventures are gaining popularity! For a Landowner, developing within a joint venture partnership delivers increased profitability instead of selling the land undeveloped. In a joint venture, the Landowners enters into an agreement with a developer, contributing land while the latter may finance or manage the project or both.

    Pak Green

    The profits are then shared at a pre-agreed ratio within the joint venture agreement. Architects and required consultants may also agree to contribute their services as part of the joint venture and be reimbursed at the conclusion of the project when the profits are realised.

    Most landowners and property developers are used to traditional methods of financing construction projects which involve raising capital by either selling part of the land or borrowing a loan from a bank or both. A joint venture partnership with us would eliminate this and landowners can achieve a higher return.

    By becoming a joint venture partner, you can benefit in many ways. Not only are we able to provide more flexibility and better terms, but also far greater access to different tiers of capital.

    As the financial partner we will be seeking the most cost-effective funding solutions to maximise the profitability of the project for the benefit of all partners.

    • Detailed approach
    • Experienced team
    • PakGreen has extensive experience as a joint venture partner. Our successful approach is centred around bringing together a team of individuals, each of whom are experts in their field and who collectively deliver outstanding results.
    • We value long term relationships, and always seek to ensure that our clients can succeed in their ventures through our involvement.
    • We seek to establish joint venture relationships with like-minded property developers and investors, becoming a financial partner with those who are experienced and proven in their field to further their success.

    The Benefits

    The benefits of Joint Venture (JV) funding:

    How It Works

    1. You have a land or but being residing overseas don’t have time to develop it.
    2. Joint Venture partnership can fund 100% of all associated costs.
    3. On completion and sale of the development the profits are divided.

    The partnership supports throughout the development with site progress, meetings, and monthly valuations, before signing off on practical completion then splitting the profits. 

    Trusted Joint Venture Partners

    Our leadership team are able to draw on their experience of working on many forms of JV procurement – ranging from contractual JVs, PFI investments, Public Private Partnerships and many other bespoke arrangements – and we believe that our ability to invest whilst maintaining shareholder accountability for the construction phase of the project truly sets us apart and allows us to make quick and informed decisions.

    We are able to combine our knowledge of JV arrangements with our in-house outsourced culture and construction expertise to ensure that we are the trusted partner of choice. We have worked with a number of clients investing capital and/or services for fixed or fluctuating levels of development return.

    Joint Venture Models

    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

    Process

    FAQS

    Everything you need to know in one place

    Do I have to invest any of my own money?

    No, we provide 100% of the funding for every profitable property development and investment you find in the UK via our platform.

    How are you able to cover all these costs?

    We leverage 65%-75% of the overall hard costs via debt instruments. Therefore meaning the return on capital invested is based on the remaining equity plus soft costs. The feasibility of each scheme is subject to a satisfactory red book valuation confirming values.

    How does PakGreen work?

    PakGreen stands for a joint venture which is between you as the property developer, our equity investor line and PakGreen We mix senior debt with equity with an SPV being formed to act as the borrower. As the lead property developer, you will provide a personal guarantee for the senior debt (which is capped) being that the you’re responsible for delivering the project and ensuring the exit is achieved. The senior debt interest is borne by the SPV as it forms part of the project costs. The net profits, after payment of the senior debt, mezzanine debt (if applicable) and equity invested, will be distributed according to each parties shareholding. Corporation tax will also be deducted

    What’s in it for PakGreen?

    PakGreen is a platform, asset and project manager that provides 100% funding to experienced property developers and housebuilders. In exchange, we receive 20% of the profit upon the exit of the project being realised (whether that’s selling or letting). Therefore if you’re not successful, neither are we.

    What’s the benefit in using PakGreen?

    We provide 100% funding, experience, administration, sales progression, accounting, TAX returns and employers agent and project management in making sure proposed schemes come to life and are delivered. We find experienced property developers and housebuilders often have more opportunities than funds; this is where PakGreen comes in. To enable those property developers to take advantage of opportunities as they arise.

    Am I able to put money in as the property developer?

    Yes, you’re able to put in capital towards your project which would result in your shareholding increasing. You’re able to do this via our equity platform once the project is available for funding.

    Great, how do I send you my proposal?

    Once you’ve signed up to PakGreen, you can create and send us proposals via our platform.

    How much does it cost to submit a proposal?

    It’s a mere investment on your part of £500 to submit a proposal, which covers our administration fee for reviewing it. It’s also to make sure you’re serious. Upon successful completion of the purchase for your proposed scheme, this fee is refunded to you.

    Can you tell me if my proposal is for you without having to pay for one?

    If you’d like to know whether your proposal is one for us, without having to pay the cost of a proposal upfront, simply email the feasibility of your scheme or investment, along with the plans. We’ll also provide key headline figures, showing what your share of the profits could look like, to help you make up your mind. Should you then be looking to proceed, you’ll need to submit a proposal to take things to the next stage.

    Can I get help submitting a proposal?

    Absolutely. Proposal support is on hand and can be requested at anytime.

    Can I boost my proposal to the front of the review queue?

    Yes. Once you’ve created a proposal there’s an option to boost it to the front of the queue so our investment analysts look at yours first.

    What happens if my proposal is rejected?

    We’ll notify you, however rather than just rejecting it we tend to offer suggestions on how to get it approved.

    Am I able to select my own solicitors?

    No – We select the solicitors from our in-house panel. It’s essential we have some processes streamlined to avoid mistakes.

    What type of properties does PakGreen invest in?

    We invest in both residential and non-residential schemes.

    Can PakGreen help me with the exit strategy?

    Yes. Our in-house project management team can talk you through what you need to do and when you need to do it. It’s important to remember we’re only successful when you are so it’s in both our interests for you to succeed. Whether you’re successfully selling or renting and managing properties, we want to see exit strategies achieved within 10-36months.

    So what will PakGreen do from start to finish?

    We oversee the lifecycle of the development from start to finish to ensure each scheme achieves an exit.

    If I don’t want to do the work of the property developer, can I invest equity into a project?

    If you’re a high net worth or sophisticated investor, you can invest in the project(s) of your choice for available other projects.

    What’s the minimum return on investment you aim to achieve for each project?

    We look for a minimum return on capital of 20% on our Sell for Profit product and 10% yield on our Let & Hold product. Before you submit your proposal, we will provide you with some headline figures for your consideration.

    What timescales do you work within for each project?

    We generally look for an exit within 10-36 months, which is measured against total capital in, security, risk, inflation, macro / micro economics and profitability.

    How do we assess property opportunities?

    Our analyst team have predefined due diligence checklists for each property development scheme presented to us.

    Who pays for the Plot valuation, initial report and searches?

    Initially, you will pay for the Land plot valuation, initial report and searches. Should there be any surveys required to enable a positive report on title, then you will be expected to cover the cost. Once we’ve completed on the purchase, you will be reimbursed upon evidencing payments. These costs form part of the SPV cost.

    Can PakGreen help me with the project management?

    Absolutely. We recognise our property developers and housebuilders have different ways of working therefore PakLand is able to project manage the development.

    How long does it take to obtain an approval?

    When you submit a proposal it’s important to upload all the requested documents in order for PakGreen to validate your proposal. Our service level agreement in reviewing proposals to make decisions is 5 working days from the validation date. Therefore, it’s important you respond quickly to our validation requests, which will outline any documents needed to validate your proposal.

    What happens when my proposal is accepted?

    When your proposal is accepted, an agreement in principle (AIP) will be issued. This will outline our heads of terms. In order to accept, a £500 commitment fee is payable. This is refundable upon completion of the purchase or should PakGreen  withdraw our offer. Should you withdraw, the commitment fee is non-refundable.

    Once you’ve signed the AIP, it can take up to 6-8 weeks to exchange and complete dependent upon the depth of surveys and legals involved. A valuation is also required. Our company policy is to exchange and complete on the same day. To enable this, both the shareholder and development agreements are issued once you’ve returned the signed AIP and paid the commitment fee.

    What happens if there are any delays to a project?

    We appreciate there can be delays in the world of property development. Some won’t be in our control, whereas some will. Typical delays can be caused by delays in planning conditions being submitted, detailed designs not being issued, poor procurement schedules, and programmes not being kept to.

    We help to mitigate those by overseeing the programme from start to finish, though as the property developer or housebuilder the onus is on us /you to do the work. Should you feel there is neglect being applied, you serve us with a rectification notice which gives you 4 weeks to rectify the issue.

    To provide some guidance, this is why it’s vitally important to select a competent and experienced professional team that’s not made up of one man bands. We assist you from the outset in making sure the correct professional team has been selected and all for market prices.

    What’s the purpose of the shareholders and development agreements?

    The shareholder agreement is an agreement entered into between all the shareholders – you as the property developer, PakGreen  and the equity investor line. It regulates the relationship between the shareholders, the management of the SPV, ownership of the ordinary shares and the protection of the shareholders. It also governs the way in which the SPV is run.

    The development agreement is entered into by you as the Landowner or house builder and the SPV. It is used to set out your obligations. The agreement details the proposed scheme we are going to build, the timeframes they are to be carried out as well as the level of input each party will have during the process.

    What is the structure of the joint venture?

    A newly formed Pakistan Base limited company is created to act as a Special Purpose Vehicle (SPV) for each venture. As the Landowner and PakGreen as Property Developer, you will hold 40%-50% ordinary shares of the SPV (dependent on the model chosen) with matters requiring consent being 81%. This structure protects all parties. A development agreement is also executed which details what we will be delivering and by when.

    There are two directors of the SPV; one is you as the Land Owner and one is PakGreen  as Property Developer and the other a Director of from Investor(s) . All funds are controlled by PakGreen. You reward is 40-50% of the development profits for achieving the exit. Both the profit and any rental or business income generated is distributed according to the shareholding amounts.

    OTHER SERVICES

    We offer a range of services and aim to be your JV Partner of choice for all your construction ventures in Pakistan. We deliver schemes on a design and build and construction management plus investments basis across a range of sectors and can provide additional support to our customers through our marketing & sales team for these projects.

    01 Traditional and Design & Build Contracting

    Our own or through other highly recognized award winning highly skilled design architects, operations and commercial teams use our culture, systems and processes to bring customers’ briefs to life: turning design into reality.

    02 Construction Management

    We work collaboratively on behalf of our customers on the planning, design and construction of projects from start to finish. Our people, skills and communications are a critical success factor in the delivery of project requirements.

    03 Pre-Construction Management

    Our skills and capabilities as a construction management team make us the perfect partner to support you during the important pre-construction phase of your project.

    04 Built Environment Management Consultancy

    We work on behalf of our customers on creating clearly defined and easy to deliver procurement, delivery and asset management strategies, providing straightforward and commercially astute technical advice.

    05 Magna Off-Site Solutions

    For all forms of off-site construction, we take an approach based on ‘pre-construction for production, not construction’. This makes us the perfect partner for customers, manufacturers and suppliers who are looking to work with a turnkey principal contractor.

    Get In Touch

    please register your details below and one of our friendly advisors will come back to you.



      Get in Touch

      +44(0)207 402 4071

      info@pakgreen.co

      5 Bishopsbourne, 134-136 Westbourne Terrace, London W2 6QB United Kingdom

      Quick Links

      • Home
      • Abous Us
      • Services
      • Projects
      • Careers
      • FAQs

      Services

      • Property Development
      • Marketing & Sales
      • Asset Management
      • Project Management
      • Exhibitions
      • Investment Conferences
      • Legal Services

      Other Links

      • Privacy Policy
      • Complaints Policy
      • Conflicts of Interest Policy
      • Cookie Policy
      • Risk Warning
      • Terms and Conditions

      Registered in England and Wales,
      Company number 10625895

      PakGreen is brand name of MARVIDA INVESTMENTS LIMITED (A Marvida Group Company)
      Visit our website: www.marvida.co

      Marvida Investments Ltd/PakGreen is not authorised or regulated by the Financial Conduct Authority, we recommend investors seek advice from a qualified professional. Images are for marketing purposes/illustration only. 2022 © PakGreen. All rights reserved. Subsidiary of Marvida Group.

      We use cookies to give you the best online experience. By using our website you agree to our use of cookies in accordance with our cookie policy. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
      Cookie SettingsAccept All
      Manage consent

      Privacy Overview

      This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
      Necessary
      Always Enabled
      Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
      CookieDurationDescription
      cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
      cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
      cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
      cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
      cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
      viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
      Functional
      Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
      Performance
      Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
      Analytics
      Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
      Advertisement
      Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
      Others
      Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
      SAVE & ACCEPT